Ahead of leaving the EU in January 2020, Quilter Investors carried out detailed analysis across all functions, suppliers and portfolios to fully understand the implications of Brexit on the business and our customers. Preparations have been made and legal guidance obtained to ensure we make any necessary changes which may be required as a result of a no-deal Brexit.
Brexit should have limited impact on our ability to trade and manage your portfolios. We are prepared for a no-deal Brexit and have appropriate contracts in place with our trading counterparts and third-party suppliers; we have been working with each of these in the lead up to Brexit and again in the lead up to the end of the transitional period to ensure that they can continue to provide us with the services required.
Our Irish fund range (the Compass Portfolios) have entered the Financial Conduct Authority’s (FCA) Temporary Permissions Regime (TPR) to ensure that they can still be accessed by UK investors post Brexit. The TPR will enable relevant firms and funds that passport into the UK to continue operating in the UK when the passporting regime falls away at the end of the transition period. Further information can be found out about this on the FCA’s website.
It is anticipated that customers living in the EU, outside of the UK can remain invested. In the event of a no-deal Brexit, your UK bank account (if you have one) may be closed and you may need to advise us of amended bank details prior to receiving any electronic payments.
The Compass Portfolios will remain an Irish domiciled UCITS fund post Brexit. UCITS funds are investment funds regulated at a European Union (EU) level. The portfolios will remain within the Irish Collective Asset-management Vehicle (ICAV) and Quilter Investors will continue to be able to provide investment management and distribution services to the ICAV.
Quilter Investors has entered the Compass Portfolios into the UK’s Temporary Permissions Regime (TPR) to ensure that they automatically remain registered in the UK following the end of the transition period (in the event of no trade deal being agreed).
The Depositary for our UK domiciled funds is Citibank Europe Plc, UK Branch (a UK branch of an Irish company). Citi are in the process of transferring the UK Depositary activities into one of their UK entities. This activity is due to be completed in May 2021. Whilst this will require some changes to our literature to reflect the change in company location, there is no impact to customers or the service you receive.
The existing Ireland based depositary entity will be able to continue to provide services to our UK domiciled funds from 1 Jan 2021, operating under the UK’s temporary permissions regime.