27 January 2019
Martin Currie and our parent, Legg Mason, have been undertaking contingency planning for some time to address potential changes as a result of Brexit. In line with the wider financial services industry, our plans address a “hard Brexit” scenario where there is no formal deal between the UK and the EU. Planning for such an eventuality ensures that we are prepared for any outcome of the political negotiations.
We have set out some further information below for different categories of our clients. However, if there is anything relating to your business with us that is not covered below, please do not hesitate to get in touch to discuss.
UK investors in our UK fund range
Martin Currie’s UK domiciled funds are sold under Legg Mason’s UK based fund range. As Martin Currie is a UK based manager, our ability to manage the funds after Brexit will be unchanged. Our relationship does not rely on cross-border passporting and is therefore largely unaffected by Brexit. After the UK leaves the EU, we will remain regulated by the FCA who will continue to oversee financial services business in the UK. Whilst the FCA will inherit new powers in place of EU bodies, it is expected that the UK regulator will maintain a close and cooperative relationship with the EU and the regulators in the 27 remaining member states.
UK and other EU based investors in our Irish fund range
Martin Currie’s UCITS global funds are sold under Legg Mason’s Irish based fund range and are therefore already based in the EU. The funds will continue to be able to be sold across the EU after Brexit without disruption.
Additionally, the funds will continue to be able to be sold to UK investors under new permissions granted by the UK government.
Under the UCITS rules, portfolio management may be delegated to a manager either in an EU member state or in a third country outside of the EU. We therefore do not expect any change to the ability of Martin Currie to manage the funds following a hard Brexit when the UK becomes a third country based on confirmations from the FCA and European regulators that regulatory cooperation agreements will be in place ahead of 29 March 2019.
For clients based in the UK or other jurisdictions outside of the European Union there will not be any impact on your relationship with us as we do not provide services to you based on European financial services passports.
We will be working with clients based in Europe individually to ensure continuity of service but do not anticipate any material impact on our relationship.
More broadly, Martin Currie has conducted a full review of the implications of a hard Brexit and has plans in place to ensure continuity of its investment management business. We continue to monitor events and review our plans in light of any developments.