Our position on Brexit
On Friday 31 January the UK ceased to be a member of the EU and entered a transition period during which EU law and regulation will continue to apply during negotiations on a Free Trade Agreement (FTA).
At this stage it remains uncertain what level of agreement will be reached before the end of the transition period on 31 December. While the terms of the EU-UK Withdrawal Agreement make provision for a one or two year extension to the transition period the UK Government has stated repeatedly it will not make any such request.
This is likely to lead to continuing uncertainty until there is greater clarity on the final terms of the agreement and the extent to which it will cover existing trade in goods and services, including financial services.
As part of our Brexit planning we have considered a range of scenarios, including the possibility of a FTA not being in place by the end of the transition period, and put in place arrangements to mitigate any potential disruption for our customers, clients and operations. Specific actions include:
- Establishing an EU MiFID firm in Dublin, Aberdeen Standard Investments Ireland Limited, to provide portfolio management and distribution services to clients in the EU27. This company is now fully staffed and operational.
- Restructuring our EU branch network under the new MiFID firm to provide services and support the distribution of Group products.
- Expanding the activities of our Luxembourg-based management company to provide services to an increased number of Irish and Luxembourg domiciled funds.
We will continue to follow developments closely and regularly review the arrangements we have in place, including those for a ‘cliff edge’ scenario. As a global investment manager we have extensive experience of adapting to regulatory change and working across borders.
Our priority is to ensure we are in the best possible position to provide our customers and clients with continuity of service, regardless of the scope and terms of any FTA which takes effect between the UK and the EU when the transition period comes to an end.
As at 14 May 2020