Regulatory Changes Impacting Fund Distribution

18th February 2025

Global Knowledge Hub Update

Staying ahead of regulatory developments is crucial for fund managers navigating cross-border distribution. That’s why our team of investment fund lawyers and regulatory specialists have been working diligently to update Global Knowledge Hub (“GKH”) with the latest insights to keep our clients ahead of the regulatory curve.

This month in particular, we’re covering updates that could significantly impact your market strategy—including the UK’s Overseas Funds Regime (“OFR”), Hong Kong’s FASTrack UCITS approval process, and revised regulatory fees in Italy and Andorra.

UK’s Overseas Funds Regime (OFR): Will Your UCITS Fund Keep Its UK Market Access?

The UK has introduced the Overseas Funds Regime to simplify and streamline market access for overseas investment funds. If your UCITS fund is currently being marketed in the UK, this could be one of the most significant regulatory shifts in recent years.

What’s changing?

The OFR replaces the Temporary Marketing Permissions Regime (“TMPR”), that UCITS funds must apply for to continue operating in the UK. But here’s the challenge—funds under the TMPR must apply for recognition within their designated “landing slots” between October 2024 and September 2026. In case you miss your slot, and you could lose UK market access.

Meanwhile, new EEA-based UCITS funds (excluding money market funds) have been able to apply for recognition since September 2024. The key takeaway? Advance planning is crucial for a smooth transition.

At Zeidler, we have already successfully registered funds under the OFR for our clients. If you have questions or need support, talk to our team today. In the meantime, stay tuned for Part 2, where we’ll explore more compliance requirements and regulatory expectations under the OFR.

Hong Kong’s FASTrack – A Game-Changer for UCITS?

If you’re considering UCITS distribution in Hong Kong, there’s a major regulatory development you need to know about—the new FASTrack authorisation process.

As part of a pilot programme, UCITS funds from Mutual Recognition of Funds (MRF) jurisdictions can now secure approval in as little as 15 business days—a significant improvement on standard authorisation timelines.

Why does this matter?

Hong Kong is strengthening its position as a premier asset management hub, and the FASTrack initiative is a step toward more efficient fund approvals. However, this pilot programme runs only until 4 May 2025. If you’re looking to enter the Hong Kong market, time is of the essence.

If you’re considering launching in Hong Kong, now is the time to act. Talk to our team today to explore how this opportunity could benefit your fund.

Italy and Andorra – Have You Budgeted for 2025’s New Fees?

Regulatory fees are increasing in Italy and Andorra, and if your funds are registered in these markets, it’s important to be aware of these changes.

Italy – CONSOB’s 2025 Revised Fees

The Italian regulator CONSOB has announced new annual fees for UCITS and AIFs in 2025:

UCITS marketing to retail investors: Up to EUR 2,390 per registered fund or sub-fund.

UCITS with closed offers but still holding Italian investors: Annual fee of EUR 1,690.

AIFs marketing under Article 32 AIFMD: EUR 1,110 per year.

Andorra – AFA’s 2025 Foreign Fund Registration Fees

The Andorran Financial Authority (AFA) has also adjusted its foreign fund registration fees for 2025:

Fund registration fee: EUR 2,391 per fund.

Sub-fund registration fee: EUR 1,195 per sub-fund.

While these increases may seem incremental, they add up quickly. Make sure these revised costs are factored into your 2025 budget planning to avoid surprises.

Stay Ahead of Regulatory Change with Global Knowledge Hub

At Zeidler, we understand how complex and fast-changing fund regulations can be. That’s why we created the Global Knowledge Hub, our proprietary web-based platform that delivers practical, up-to-date insights on UCITS and AIF registration and compliance across multiple jurisdictions.

GKH is designed to simplify cross-border fund distribution, offering guidance on:

Registration & Compliance requirements

Marketing, pre-marketing, private placement & reverse solicitation rules

Jurisdiction-specific fund distribution regulations

With coverage across 75+ jurisdictions (and growing), GKH provides a fixed annual fee structure, flexible subscription plans, and expert support via phone and email — ensuring you stay ahead of regulatory changes without unnecessary complexity.

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