Doing Business in (and with) Europe - Speakers - Simmons & Simmons

Doing Business in (and with) Europe
Speakers

Nick Colston                                          Edward Gottfried
                                                                                                  Janos Renz Hotz
Partner – Financial Services Regulation               Compliance Product Manager, Vault
                                                                                                  Global Head of Product - BTCA
Simmons & Simmons                                     Bloomberg L.P.
                                                                                                  Bloomberg L.P.

                            Martin Shah                                            Bob Shea
                            Partner – Corporate Tax                                Global Compliance Product Manager - AIM
                            Simmons & Simmons                                      Bloomberg L.P.

                                                      Moderator

                                                      Ania Rontaler
                                                      Partner – Corporate
                                                      Simmons & Simmons

Do you already have a European operation?

    Yes – in the UK
    Yes – in Ireland
    Yes – in Luxembourg
    Yes – in France
    Yes – in Germany
    Yes – elsewhere in Europe
    No – but I am actively considering this
    No – and I have no plans

2

Tax updates
    UK operations

    • Manager taxation – stormy waters…
    • Reducing corporate tax rates – operate through an Ltd?
    • Transfer pricing
    • VAT and research payments
    • Brexit restructuring taxes
    • Change of government – impact on the tax landscape

    Other EU operations

    • Jurisdictions keen to attract EU27 hub operations
    • Attractive personal tax regime for inpatriates – e.g. Italy, Portugal, France
    • Comfort on tax position of fund?

    Inbound investments

    • Impact of BEPS and ATAD I / ATAD II – higher effective tax rates for EU businesses
    • DAC6 – mandatory disclosure rules
    • Tougher tax regime for digital businesses – e.g. UK digital services tax and EU proposals
    • EU Financial Transactions Tax redux
    • Local transaction tax developments – e.g. Spain

3

European Regulatory Update

    • Marketing update – AIFMD and UCITS

    • UK Senior Managers & Certification Regime (SMCR)

    • Revisions to Markets in Financial Instruments Directive (MiFID2)

    • Best execution

4

LIBOR replacement
    UK FCA          27 July 2017 speech by Andrew Bailey

                    LIBOR may cease to be available post 2021

                    Market participants must focus on benchmark replacement

    Consultations   Replacement benchmarks – e.g. SONIA / ESTER

                    Standardised language – LMA / ISDA

                    Impact of EU Benchmarks Regulation

    Practical       Maintain flexibility in new contracts
    issues          Review of existing contracts for risks

                    Use of LIBOR in other contexts, e.g. fee calculations, counterparty remuneration

5

GDPR
    EU presence   EU entity in scope of GDPR
                  Back office functions in the US, e.g. finance, HR, IT
                  Cross-border transfers of personal data
                  Could the EU entity be deemed an establishment of the US parent?

    No EU         Fund interests or management services being offered to EU investors
    presence
                  Monitoring of behaviour of EU individuals – e.g. websites / use of “big data”

    Fund          Parallel compliance obligations where the fund’s interests are being offered in the
                  EU
    obligations
                  How will the fund comply – assistance from investment manager?

6

What do you see as the biggest challenge facing your business
in terms of doing business with Europe in the next year or so?
Please rank the below options, 1 to 6, with 1 being the biggest challenge.

1. Tax
2. Brexit
3. Asset Manager Regulation
4. Other Regulation, eg of Banks
5. Political climate
6. Economic climate

7

Questions?

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