Overseas Funds Regime: Update for firms

First published: Last updated: 01/05/2024

The Overseas Funds Regime (OFR) is expected to go live later in 2024. We provide some key dates and initial information about how you can apply.

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What is the OFR

The OFR is a new gateway to allow certain investment funds established outside the UK to be promoted in the UK, including to retail clients.

If a fund applies for and is given 'recognised scheme' status under the OFR, it can be promoted in the same way as an authorised collective investment scheme established in the UK.

Who can use the OFR

The categories of funds that will be able to use the OFR are specified in legislation following an equivalence determination by the Government. At the outset, the OFR will be available to most funds established in EEA and EU member states that have been authorised under the UCITS Directive. The exceptions are EEA UCITS that have been authorised as money-market funds.

The OFR will be available to new EEA UCITS that have not previously marketed to UK retail investors, as well as EEA UCITS that are currently operating under the Temporary Marketing Permissions Regime (TMPR) – the transitional arrangements following UK withdrawal from the EU.

Joint roadmap

We have published a joint roadmap with the Treasury about bringing in the OFR. It shows the key milestones, including the further policy decisions to be taken by the Government and FCA that will affect funds recognised under the OFR. It sets out what happens when.
 

Read our roadmap document (PDF)

Applying to recognise a fund under the OFR

To become recognised under the OFR and be able to market to UK retail investors, all operators of EEA UCITS will need to complete an application form and pay us a fee. We use the term ‘fund operator’ to mean either the management company of a UCITS, or a self-managed investment company, as applicable. Fund operators should apply online via the FCA Connect system.

New schemes

We intend to open the gateway to new schemes (i.e, those not in TMPR) in September 2024. New schemes will be able to apply at any time from that date without a landing slot.

Schemes in the TMPR

For schemes in the TMPR, the landing slots are likely to start in October 2024 and will be available for operators of stand-alone EEA UCITS. After that, we intend to issue landing slots to operators of umbrella UCITS by alphabetical order of the fund operator’s name. The sequence of landing slots is then staggered monthly to help with operational efficiency.

The application process

1

Register

2

Submit application

3

Pay application fee

4

We have 2 months to make a decision

Specific information for TMPR funds 

There are large numbers of funds currently using the TMPR. So we plan to follow a structured process for those funds, which treats all fund operators fairly and allows for a smooth transition to the new regime.

We set out what the operators of funds in the TMPR need to do below.

Check your existing records

We need accurate data so we can contact and invite you to transition your funds from TMPR to OFR.

You can prepare by:

  • reviewing your firm’s record on our Register – the Register shows the details we hold about you 
  • making sure we have your correct contact details, as we may email you at the address on our Register for the fund operator
  • reviewing the fund population we hold for you as fund operator on our Register, to check that the list of funds we have recorded in the TMPR matches your own records

We ask you to notify us if your contact details are wrong by emailing [email protected].

Landing slots

To transition funds efficiently and ensure a good user experience for fund operators, we have allocated ‘landing slots’.

We will issue a ‘direction’ to each fund operator in the TMPR, giving a landing slot and telling you how to apply.

This direction will be binding.

Please consider the impact, including potential tax implications, on UK investors if you wish to remove any funds from the TMPR.

Completing your application

You must be registered on Connect to submit OFR applications. You will be able to do this ahead of the opening of the OFR.

Please check this page for updates including a ‘How to’ guide for completing the new user Connect registration and the subsequent enrolment form.

You will need to complete an application form for each scheme. There will be 3 application forms to choose from:

  1. Application to recognise a stand-alone collective investment scheme under s271A FSMA.
  2. Application to recognise an umbrella collective investment scheme under s271A FSMA.
  3. Application to add a new sub-fund(s) to an umbrella collective investment scheme already recognised under s271A FSMA.

We will publish links to ‘How to’ guides on how to complete these forms, and details of additional documentation (e.g. fund prospectus) to submit as part of the application on this page.

You will need to pay an initial application fee as part of the application.

Decision process

We will screen applications to ensure the required information is complete. We may contact you for further information. If the fund meets the criteria for recognition, we will confirm this to you by email within 2 months of receiving a complete application.

You may market the fund in the UK as soon as you have received confirmation of recognition from us. We will publish details of recognised funds on our Register.

Once you are recognised

OFR fund operators will be subject to certain rules when marketing a recognised scheme. This will include new disclosure rules that will come into effect during the period covered in the roadmap.

This page cannot provide a comprehensive guide to those requirements, but we outline some key elements below.

You are recommended to take suitable professional advice to understand the ongoing obligations under the UK regulatory system.

Notification of changes following recognition Fees Issuing and approving financial promotions Disclosure about consumer redress

Future policy initiatives

You can find information here on upcoming policy initiatives relevant for funds considering applying for OFR recognition.

Further information

The FCA Handbook contains directions, rules and guidance relating to overseas recognised schemes. These are set out in Chapter 9 of the Collective Investment Schemes sourcebook (COLL 9).

We will update this page as new information becomes available, including information on when you can start making applications.