Directive 2009/65/EC (UCITS IV) introduced an electronic, regulator vs. regulator procedure for passporting UCITS funds. Within 10 working days from submission of a complete application to the respective Home State regulator, marketing of UCITS funds can commence in the Host State of choice. Whilst the cross-border process for passporting UCITS funds was improved, there is still no uniform definition of marketing at European level. Accordingly, because the marketing is regulated at local level, Host States are at liberty of gold-plating the process and impose compliance with additional elements required in order to grant marketing passport to UCITS funds in a specific country. One of the most common requirements is the appointment of a local Paying Agent for UCITS.
UK Facilities Agent Service
From its Mayfair offices in London, Veneziano & Partners offers UK Facilities Agent Services for fund managers willing to distribute their funds in United Kingdom. This service allows managers to discharge the obligations imposed by COLL 9.4 of the FCA Handbook, requiring that foreign managers maintain an address and facilities for investors in the United Kingdom when passporting UCITS funds for marketing in United Kingdom.
Impact of Brexit on UCITS
Following the majority vote at the referendum held on June 2016, a withdrawal of the United Kingdom from Europe – so called Brexit – once in effect will also have impact on UCITS funds. Veneziano & Partners has the expertise and the network to assist fund managers dealing with Brexit issues.
UK UCITS funds will cease to be able to be marketed in Europe on the basis of the passport and the same will happen to European UCITS marketing in UK. In both cases, these funds will have available private placement regimes, as long as these exist. For European UCITS funds intending to market in UK, the Financial Services Markets Act contains provisions to cater for recognition to market granted by the UK authorities to foreign funds, meeting certain criteria, on an individual and case-by-case basis.
Veneziano & Partners is a veteran of the process of UCITS fund passporting and can efficiently prepare and arrange submission of applications, liaise with regulatory authorities until approval and on ongoing basis thereafter