Asset managers have just three months left to apply for a Dublin authorisation should the UK crash out of the EU without an agreement over its future relationship with the bloc, Irish investment experts have warned.
In the event of a so-called ‘hard Brexit’, July is the cut-off point for a process that could take between six and nine months, according to Mark White, head of the investment management group at McCann Fitzgerald, a leading Irish law firm.
“People are starting to count backwards [from the Brexit date of March 2019],” he said. “I think you will see a number of applications going in over the summer from UK asset managers and other financial services businesses that need to continue to access the EU market post-Brexit and are not prepared to operate on the basis of ‘let’s hope it’s all right on the night’.”
Last month, the UK and the EU agreed to a conditional transition period until 31 December 2020 as a possible route to a more orderly withdrawal from the union. This would extend the date for the completion of any business restructuring that might be required in order to continue to access the EU, post-Brexit.
Firms are getting to the point “where they can delay their plans no longer”, he said.
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