Janus Henderson Investors established a Brexit project following the 2016 referendum to look at all possible Brexit impacts including distribution, regulatory permissions and licenses, HR, IT and operations. Through this project, Janus Henderson Investors sought to minimise the potential impact on investors regardless of the outcome of Brexit.
The project team remain actively involved in discussions with regulators, industry groups and clients to ensure Janus Henderson Investors are abreast of developments following Brexit.
The project team is supported by a number of law firms both in the UK and across multiple European countries.
We have a long history in both the UK and continental Europe, and the planned build out of our existing office in Luxembourg was completed in 2019. We are well placed to continue to support our clients globally after Brexit.
Janus Henderson Investors has long established fund ranges in the UK, Luxembourg and Ireland. We have launched one new sub-fund in Luxembourg within our existing SICAV structure to replicate a strategy that is currently only available in a UK domiciled fund structure.
Our approach has been to avoid structural changes to products so we have made a small number of clarifications to how we describe some fund objectives, to ensure these funds can continue to invest in UK assets as they do now.
The majority of our EU investors are already invested in our Luxembourg or Irish fund ranges.
We understand that Brexit should not affect the ability of existing investors in most EU countries to continue to hold their investments or our ability to continue to service those existing investors in terms of reporting and providing information on existing investments, although we are monitoring whether Janus Henderson will be able to continue to register UK funds for sale into the EU.
If you have any concerns or questions about your investment in a Janus Henderson fund, please contact your relationship manager or email us at email@example.com.
We have registered our EU funds which are marketed into the UK under the FCA’s Temporary Permissions Regime which will allow us, temporarily, to continue to offer EU funds in the UK on the same basis as we do today following Brexit.
When the registration window closes, we will seek to obtain permanent registration for our EU funds when notified it is possible to do so by the FCA.
We have no plans to transfer or terminate our wholesale distribution agreements with EU distributors.
Brexit does not necessitate any changes to service providers. The existing service providers to the EU funds are based in the EU, and the service providers to the UK funds are based in the UK.
No. Janus Henderson Investors has operated offices in continental Europe for some time; we have offices in Luxembourg, Germany, France, Spain, Italy and The Netherlands.
We have expanded our existing office in Luxembourg to provide additional oversight of our activities in continental Europe. We have recruited additional headcount in areas such as investment management oversight, fund operations, compliance, risk management and distribution oversight.
The European Securities and Markets Authority (ESMA) and the UK FCA have confirmed that Memoranda of Understanding (MoUs) have been agreed between the FCA, ESMA and EU27 authorities. This regulatory clarification will allow Janus Henderson’s UK investment management entities to continue to manage the funds of the Luxembourg and Irish Management Companies after the UK leaves the EU.
The investment management of our UK funds is not impacted as they are UK domiciled funds with a UK investment manager.
We do not currently intend to transfer any investment management agreements as a result of Brexit. This is based on feedback received to date from regulators in relevant EU-27 jurisdictions relating to the ongoing management of existing segregated mandates by UK regulated entities. Should this situation change we will contact our impacted clients to discuss.
We are fully engaged with various parties from brokers, benchmark providers, clearing counterparties, MTFs (Multilateral Trading Facilities) and third party administrators. To date we have identified no anticipated changes to executing entities, no requirements to repaper agreements and no increased costs. With regards Benchmarks and MTFs there is no anticipated impact based on dialogue with providers, although JHI continue to monitor the position.
During the transition period the passporting of funds and regulatory permissions continue so, in practical terms, nothing changes from how we operated when the UK was a member of the EU.
Whilst we have prepared for a hard Brexit, we await the outcome of negotiations between the British government and the EU to understand the regulatory framework for the future.