Potential implications on the use of passporting for asset management firms in a post-Brexit world

Following the “Leave” result of the United Kingdom’s Referendum on whether to Remain or Leave the European Union, one the most talked-about issues is whether the UK will continue to have access to the EU’s financial services single market and—crucially—whether UK financial services entities will maintain their ability to use the passporting regimes provided for under a variety of EU Financial Services legislation. Whilst we acknowledge the high degree of uncertainty as to what the final form of any new relationship between the UK and the EU will look like, in this note we set out to highlight and consider some of the key questions surrounding the implications of the EU passporting regime as we currently understand them and what potential passporting options may look like going forward for UK financial services entities in the asset management sector.