FMLC has published its response to Treasury’s consultation on a new Overseas Funds Regime. It notes:
- the uncertainty around the timing of the start of the new regime – and whether the new regime will overlap with the end of the TPR;
- it is unclear which areas of a third country’s regime will be part of the “outscomes-based equivalence” assessment, what the “additional requirements” will be and which types of vehicles will be eligible;
- clearer timeframes are needed around withdrawal of equivalence;
- it is not clear what the reporting requirements to FCA will be;
- the financial promotion proposals would effectively mean most funds would need to be marketed through UK authorised persons, but this could be avoided if overseas operators were required to comply with COBS rules; and
- while the proposed changes to s272 FSMA are welcome, some more guidance on the timelines for the process is needed