LUXEMBOURG: Funds industry association issues statement on Brexit

Friday June 24 2016

The Association of the Luxembourg Funds Industry (ALFI) has issued a statement following the decision of the UK to leave the European Union. For asset managers, whilst Brexit is a business issue and depends on each manager’s business model and strategy, ALFI has started working on practical solutions for the industry.

ALFI state that the impact of the UK vote will be dependent on future political decisions and trade negotiations and, in order to avoid uncertainty and to ensure that investors continue to be as protected as they are under EU regulation, it is essential that the period for negotiation is not prolonged and that a level playing field is maintained.

The Luxembourg fund industry has a very good relationship with the UK financial services industry and ALFI will seek to maintain these good relations. Luxembourg-domiciled investment funds originating from UK asset managers represented 16.5% of the total assets under management in Luxembourg at the end of March 2016 – the 2nd largest group after US asset managers. Several large UK asset managers have made Luxembourg an important part of their strategy for the global distribution of investment funds and have established important UCITS (and AIFMD) management companies in Luxembourg.

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