Industry Updates

Brexit regulatory delay could see ETF listing ‘centre of gravity’ shift from London

Uncertainty remains over the timing of the UK's post-Brexit fund regime

Jamie Gordon

ETF listings on the London Stock Exchange by newcomer issuers to Europe have virtually ground to a halt since the cut-off for entering the Temporary Permissions Regime (TPR) ended on 31 December 2020.  

In a recent ETF Stream webinar, titled ETF Investigations: The rise of white-label ETF issuers in Europe, Peter Capper, senior advisor for international fund regulation at the Investment Association, said London’s attractiveness as a destination for new listings post-Brexit now rests on the implementation of the Overseas Fund Regime (OFR).

“The current situation is a temporary one and the OFR will come in in due course,” Capper said. “The FCA and Treasury have been working hard on that but we cannot give a definite timeline on the new regime, unfortunately.

“Up until now, London has been the place to list your ETFs, it has the largest market with over 2,000 ETFs and 19 market makers.

“If it is difficult or almost impossible to list ETFs in London, then clearly there are other exchanges that offer ETFs. There is a danger that perhaps if there is too much delay, the centre of gravity might start to move towards one of the other large exchanges.”

Speakers in this webinar include: 

  • Peter Capper, senior advisor for international fund regulation at the Investment Association 

  • Jason Griffin, director of capital markets and business development at HANetf 

  • Stephen Carson, partner at A&L Goodbody 

To watch a full replay of this webinar, click here.

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