Benoît Ruelle, responsible for third party funds selection at Degroof Petercam private banking (Bruxelles based), has confirmed that there has been a reconsideration of the way UK based investment vehicles are viewed - in order to avoid any uncertainties related to a potential "no deal" Brexit.
Ruelle explains that becaue a significant portion of clients are retail clients, there is a strong need to ensure they are invested in Ucits compliant vehicles.
This means that they are now systematically excluding UK domiciled funds from their screenings when it comes to selecting new investment vehicles.
Ruelle explains: "Concerning our pre-existing investments in British funds, most of the asset managers fortunately have done the job for us. Large UK managers have indeed transferred the assets invested by continental European clients from their UK structure into the corresponding strategies from their management company located in the European Union - mainly Luxembourg or Ireland."
"Last but not least, this move has the advantage for our clients of avoiding the fiscal burden of an outright sale of their positions in UK-domiciled funds."