Robert Ophele, Chairman of the AMF, recently predicted that the EU’s fund industry would be "profoundly transformed" by Brexit. With the UK being one of the major centres for alternative funds, the industry should be prepared for certain changes in fund domiciliation patterns in 2020 and beyond, as the Conservatives push forward with leaving the European Union.
In the past, fund domiciliation decision-making has been predominantly influenced by factors such as the reputation of a jurisdiction, investor sentiment, set-up timelines and processes, regulations, costs and the quality of the service providers.
Now, however, three additional factors are dominating the thinking: the advent of Brexit, Base Erosion and Profit Shifting (BEPS), and the drive to introduce local economic substance requirements for companies’ tax residency to prevent fund managers setting up ‘letter-box’ entities.
Domicile decision-making for the alternative fund industry has entered a new era of geographic challenges and opportunities.
In my latest article, published by Portfolio Adviser, I outline the options available to alternative managers after the UK exits the EU and discuss some of the key factors beyond Brexit that stand to impact fund domicile selection. Click below to read my article in full: