On 23 June 2016, the UK voted to leave the European Union (“EU”). There will be much conjecture and debate about what the consequences of this decision will be for the UK, for the EU and for Ireland, and much will depend upon the terms of the withdrawal agreement that will be negotiated between the UK and the EU.
Ireland remains committed to its membership of the EU and retains its important position as an English speaking gateway to one of the world’s largest markets. We have prepared a table outlining the potential impact the withdrawal of the UK from the EU may have on Irish domiciled investment funds, depending on the structure of the fund, its level of engagement with UK service providers and its marketing strategy.
It seems unlikely at this stage that any withdrawal agreement would allow for the unaltered continuation of UK asset managers' / UK funds' current passporting rights under EU legislation. Relocation of fund service providers and funds themselves to EU member states such as Ireland may therefore need to be considered to ensure ongoing access to the European market. We would be happy to discuss with you any queries you may have arising from the UK vote to leave the EU.
Please get in touch with your usual Asset Management and Investment Funds Group contact should you require further information in relation to the material referred to in this update.