On this basis, delegation of investment management/portfolio management and/or risk management to UK undertakings shall continue to be possible without any disruption post-Brexit, under the condition that the concerned UK entity continues to fulfill all applicable requirements.
As the CSSF underlines, legal provisions in Luxembourg fund legislation permit the delegation of these activities to undertakings in countries outside the European Union, the so-called third countries, under specific conditions.
Moreover, in order to avoid potential financial stability risks of a disorderly exit from the EU by the UK and in the interest of client protection, the Luxembourg government tabled on 31 January 2019 a draft law aiming to grant limited and temporary powers to the Luxembourg financial services and insurance regulators to be able to extend on a temporary basis the existing rights of UK financial services providers currently offering their services or engaging in financial activities in Luxembourg.
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