On 23 October 2019, there was published on the legislation.gov.uk website the Cross-Border Distribution of Funds, Proxy Advisors, Prospectus and Gibraltar (Amendment) (EU Exit) Regulations 2019, together with an explanatory memorandum.

The Regulation is being made using the power in section 8 of the European Union (Withdrawal) Act 2018 (EUWA) in order to address deficiencies in retained EU law, so that it operates effectively following the withdrawal of the United Kingdom from the European Union.

The Regulations amends:

  • the Proxy Advisors (Shareholders’ Rights) Regulations 2019 (Proxy Advisors Regulations) so that after exit day, the Proxy Advisors Regulations apply only to proxy advisors that (a) provide services to a shareholder that has shares in a company registered in the UK or Gibraltar, and that is trading on a UK or Gibraltarian regulated market; and (b) have their registered office in the UK, or have their registered office outside of the UK or Gibraltar but provide services through a UK establishment;
  • the Official Listing of Securities, Prospectus and Transparency (Amendment etc.) (EU Exit) Regulations 2019 and the Prospectus Regulation so that the exemptions from producing a prospectus continue to operate after exit; and
  • the Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 so that UCITS marketed in the UK will not have to produce a key-investor document until 31 December 2021.

In respect of the Regulation on the cross-border distribution of collective investment undertakings (CBDF Regulation), the Regulations also:

  • amends the Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 to ensure that the CBDF Regulation remains in force for Gibraltarian-based financial services firms and funds; and
  • revokes the CBDF Regulation as the UK will fall outside the EU’s single market for financial services upon exiting the European Union.

Regulations 1, 2, 3, and 4 come into force immediately before exit day. Regulations 5, 6, and 7 will enter into force on exit day.