Solving the issues of post-Brexit EU cross-border fund distribution
5th May 2021
How Acolin’s distribution and Tied Agent solution is helping fund managers address the challenges of post-Brexit regulation.
As we pass through the first months of the post-Brexit regime, fund managers are increasingly coming to the conclusion that implementation of a workable equivalence regime between the EU and the UK is not looking likely. The rules as they stand now preclude non-EU domiciled fund sales teams from marketing funds, even EU UCITS or AIFs, in the EU. Maintenance of existing client relationships is allowed, and obviously marketing in non-EU countries like the UK itself, or Switzerland, is separate, but the initiation of any new fund client contacts in the EU requires a regulated fund distribution base in the EU.
For certain fund managers with existing EU regulated fund distribution operations, or at the other extreme, with no ambitions to raise assets in the EU, there is no need to adjust plans. However, for a large percentage of fund managers, London was the European base for the sales team and their cross-selling activities, and now that model does not work for the EU anymore.
At Acolin we have, for the past 15 years, assisted fund managers in their distribution activities across Europe, and beyond. Our focus is on all the distribution administration and regulation matters required to access investors, believing the fund sales teams are best placed to promote their products. We have developed solutions for fund registration, act as a Swiss representative or local agents where required and take care of data dissemination. With our Distribution Network Management service we integrate a fund manager’s UCITS funds into Acolin`s global and continuously growing Distribution Network providing access to fund platforms, banks and other distribution channels.
For AIFs, we have the Acolin Fundbase platform, whereby we connect AIFs to an engaged and qualified investor community, increasing visibility and access.
What are the main goals?
Both Distribution Network Management and Acolin Fundbase help our clients get to market and grow their business. Now with the challenges of a post-Brexit market, we have expanded these services and provide a Tied Agent solution to our clients.
Our Tied Agent solution is based on our German Federal Financial Supervisory Authority (BaFin) license and allows for MiFID II compliant fund distribution by fund manager clients of Acolin across the EU.
We assist fund managers with a holistic solution, including the setting up of a base in Germany or any other EU destination, providing access to distribution platforms and ultimately, investors.
For some of our clients the solution we have is the end goal, whereas for others it is a medium-term solution as they assess the setting up of a regulated distribution MiFID II entity in the EU. Either way, we are well positioned to provide support with our in-house distribution experts, our own regulatory status, and our 15 years of experience, enabling fund managers meet their distribution goals.
Our products and services have been specifically designed for asset managers and can be delivered quickly and seamlessly. Whatever your distribution strategy, contact us to discuss your specific challenges and we will endeavour to help you distributing success.