The UK’s decision to leave the European Union is a huge one and will have long-term implications for our members in the UK and internationally. Quite what those are it is impossible to conclude until the direction of negotiations becomes clear. Just as participants had begun to adapt to AIFMD, EMIR and MIFID II so we now have uncertainty as to their long term applicability for many. We recognize that our members have made large investments in getting compliant with these rules and will be looking for clarity as to what to do about future expenditure plans.

It is extremely important for members from outside the EU that they continue to have access to EU markets and EU investors and that those inside the EU should continue to have access to the UK market. This position will drive our advocacy work in the period ahead. We want to communicate with our members as we formulate our stance on every issue that is important to you and along every step of the way. Earlier today, AIMA’s Government Affairs Committee* met to discuss the impact of the vote and the next steps. Although recognizing the ongoing uncertainty and the limitations of what we can do in the short term we agreed that all members should be asked to highlight priority areas on which we should engage with both the UK and EU, and which will require renewed guidance for our members. We anticipate the key areas of focus to be:

• AIFMD Passport – will the UK be granted this?
   
• MiFID II - to prepare or not to prepare?
   
• EMIR – where to clear?
   
• UCITS – setting up an EU management company?
   
• FTT – is the risk gone?

Please contact Jiri Krol, Jennifer Wood, Paul Hale or Adam Jacobs-Dean with your suggestions or if you want to discuss any items.

Prior to the referendum, AIMA posted to its website a Note for members regarding the UK’s relationship with the EU. This Note can be downloaded here. Although the full impact of a UK withdrawal is still difficult to predict, the Note attempted to identify issues and sketch out the possible consequences for the financial services and alternative investment management industry. It will be updated in due course as the implications of the vote become gradually clearer.

We intend to organise a series of educational events for members to discuss the impact of Brexit and will confirm details of these shortly.

*The Government Affairs Committee is the substantive committee that oversees all the policy and regulatory work of AIMA. It comprises 15 representatives of manager firms all of whom have considerable experience and expertise in this field. They are mandated to steer our work in the interests of our broader hedge fund community as opposed to just their individual firms.

Jack Inglis

CEO