Fund Distribution Alert 2020-24

Fund Distribution Alert 2020-24



Said Fihri

Partner, ADV – Investment Services

KPMG in Luxembourg


BREXIT: AMF provides support to the financial sector and anticipates transitionary measures

On 28 December 2020, the AMF (Autorité des Marchés Financiers) gave instruction to the Order n° 2020-1595 of 16 December 2020 (completed by the Decree of 22 December 2020).

This Order acts as an interim step, allowing for transitional measures for capital investment funds, equity savings plans (PEA) and equity savings plans intended for the financing of SMEs and mid-tier enterprises (PME-ETI PEA). The deadline to meet the full requirements of the Brexit deal for the aforementioned topics has also been extended. This is done in order to avoid potential exposure to regulatory risk after 31 December 2020.

Equity savings plans (PEA): a nine-month transition:

Article 3 of Order n° 2020-1595 of 16 December 2020, completed by Article 1 of the decree of the 22 December 2020, extends the eligibility of securities registered in PEAs and PME-ETI PEAs up to 30 September 2021.

Until 30 September 2021, the eligibility of the below is maintained:

  1. Securities issued by UK companies that have been regularly subscribed or acquired before 31 December 2020;
  2. Securities issued by UK companies within the quota of 75% of collective investments undertakings (CIUs), provided that these CIUs were eligible as at 31 December 2020; and
  3. Units or shares of UK UCITS regularly subscribed or acquired before 31 December 2020.


  • Before 28 February 2021, the management companies managing CIUs eligible to PEA should contact the account keepers to inform them if they will comply or not comply with eligibility rules after the transitional period (i.e. after 30 September 2021).
  • Before 30 April 2021, the account keepers must inform each plan order of the loss of the PEA eligibility of a securities or collective investments undertakings.

Article 3 of the order also provides temporary measures until 31 December 2021 for retail private equity investment funds (FCPR), retail venture capital funds (FCPI) and retail local investment funds (FIP) which can be consulted under this link.


  • Management companies should check if their UK securities and funds are still compliant.
  • The Passport system between UK and France will no longer be valid after 31  December 2020.
  • French management companies may delegate the management of their financial products to UK institutions (agreement put in place between the AMF and the FCA in 2019).
  • UK UCITS will be considered as third country AIFs from 1 January 2021. The ex UK UCITS won’t be authorized to perform marketing operations in France for retail investors.
  • UCITS directive and AIFMD won’t apply for UK funds after 31 December 2020. Nevertheless, the investors who invests in such funds before 31 December 2020 will keep their shares/units but will no longer benefit from the European legislation anymore.

The AMF issues the below articles that can also clarify the situation:

(only available in French) Votre PEA et le Brexit : un délai supplémentaire pour vos investissements en titres britanniques

(available in French and English) Full effect of Brexit on 1 January 2021: impact on the asset management sector

Please feel free to contact us should you require any additional information.

Please note that any information provided is general in nature, is based on the latest publicly available information as analyzed on a best endeavor basis and does not constitute any specific legal opinion or advice.


Said Fihri
+352 22 51 51 7892

Stephanie Zedda
+352 22 51 51 7271

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