(Bloomberg) -- Ireland's central bank pressed U.K. investment funds selling into Ireland not to market products there or in the rest of the EU after Brexit, warning they could be breaking the law by doing so.
The regulator, based in Dublin, wrote to 53 U.K. mutual funds known as UCITS warning them they will lose the right to sell access to their funds in Ireland and the EU after the U.K. becomes a so-called third country outside the bloc, the regulator said in an email response to questions.
It also forewarned them that it's a criminal offense for an unauthorized firm to provide financial services in Ireland, and asked for details of any Irish investors in relevant funds by April 12.
Europe is seeking to ensure that it will continue to have oversight of asset managers, and regulators have warned that “letterbox entities,” nominally based in Europe but managed from abroad, will not be tolerated. The Irish regulator has consistently said so-called brass-plate operations aren't welcome. Firms authorized in Ireland here must be run from there, the regulator insists.
The 53 funds had all previously informed the central bank it intended to market its units to Irish investors under EU rules, the regulator said. The letter informed the funds they “will lose their right to market units in other member states of the EU including Ireland” when the U.K. exits the bloc.
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To contact the reporter on this story: Peter Flanagan in Dublin at pflanagan23@bloomberg.net
To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Dara Doyle
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