CBI Brexit Update on investments by UCITS and Retail Investor AIFs in UK funds

In the event of a hard Brexit, the Central Bank will consider:

1. Whether UK UCITS, which at that point will become UK AIFs, should be identified in Central Bank guidance as a category of investment fund in which UCITS and Retail Investor AIFs may invest. For the period while this is under consideration, the Central Bank does not propose adopting a default position which would treat the UK AIFs as ineligible. For UCITS, any investment in UK AIFs must fall within with the aggregate limit of 30% for investments in all AIFs; and
2. Whether UK investment firms, currently authorised under MiFID, should be a category of eligible financial derivative counterparty for UCITS and Retail Investors AIFs. For the period while this is under consideration, the Central Bank does not propose adopting a default position which would treat UK investment firms as ineligible.

The notice of intention can be found here.