The UK’s Overseas Funds Regime: Roadmap for Asset Managers

3rd May 2024

On 1 May 2024, the UK regulator, the Financial Conduct Authority (the “FCA”) and HM Treasury jointly published a roadmap to implementing the much-anticipated Overseas Funds Regime (the “OFR”). This roadmap gives the key stages of the process intended to be opened to EEA funds authorised under the UCITS Directive. This follows the UK Government’s decision to grant equivalence to those funds on 30 January 2024.

The UK Government also plans to extend the existing Temporary Marketing Permission Regime (the “TMPR”) until the end of 2026. Operators of funds recognised under the TMPR will be issued a three-month landing slot, usually in alphabetical order of name, in which it will be invited to apply for OFR recognition for all its funds under the TMPR.

Money-market funds (“MMFs”) were not in the scope of the UK Government’s equivalence assessment and therefore are excluded from the scope of this roadmap. The FCA will provide further information on the future regulatory treatment of MMFs in due course.

Key Dates:

July 2024: The FCA’s final rules for OFR funds will likely come into effect.

September 2024: Gateway for application for recognition under OFR will likely be opened for non-TMPR EEA-based funds.

October 2024: Gateway for application for recognition under OFR will likely be opened for TMPR EEA-based standalone funds.

End of 2025: The Government will legislate on the application of the UK Sustainability Disclosure Requirements (the “SDR”) and labelling for OFR funds.

The roadmap can be found here.

If you have any questions or require support, the Zeidler Legal Team is here to help. Our global team of professionals remains up to date on the latest legal, regulatory and compliance changes affecting the asset management industry.  If you require additional information or assistance, please get in touch with us.

Author

Kim Cuong Le

Author

Brigid Dolan