On 14 May 2024, the UK Government published formal Regulations confirming its equivalence decisions in respect of the EEA states under the UK’s Overseas Funds Regime (OFR), together with an explanatory memorandum.
The Regulations come into force on 16 July 2024.
What’s the background to this?
In January 2024, the UK Government announced that it had found all EEA states (i.e., the EU’s 27 Member States plus Iceland, Liechtenstein and Norway) equivalent under the OFR in respect of UCITS schemes – whether standalone or umbrella - which are not Money Market Finds (MMFs).
Our article on the announcement can be found here.
What is the OFR?
The OFR allows overseas schemes, such as EEA UCITS, a streamlined route to apply to the FCA for recognition, so a scheme can be marketed to UK retail investors under s.271A of FSMA 2000.
The scheme operator can make an application provided the scheme is
from a country that has been approved by HMT and
of a type specified in respect of that country.
Publication of the Regulations is welcome news as it allows a clear path for EEA UCITS which are not MMFs to continue to market into the UK without interruption when they leave the Temporary Marketing Permission Regime and apply for formal recognition under the OFR.
See also our report, earlier this month, on the HMT and FCA’s joint Roadmap on the implementation of the UK’s Overseas Funds Regime (OFR).
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