FCA is consulting on how the Overseas Funds Regime should operate in practice. The Government has designed the regime to provide a streamlined process to allow funds from jurisdictions assessed as “equivalent” to be marketed to UK retail investors. FCA will need to introduce rules to enable it to recognise relevant schemes, but wants also to have the ability to impose additional requirements on certain funds, given that in principle any jurisdiction could be regarded as equivalent.
The consultation sets out the categories of information FCA will want from applicant schemes, and proposes requirements that will ensure investors know how their protections are affected if they invest in an overseas scheme – such as the effect on FOS and FSCS coverage.
FCA wants to be prepared in case the Government recognises all EEA jurisdictions and it needs to use the new process on the funds that have previously benefited from a temporary permission. The consultation includes a draft of the proposed changes to the Glossary, FEES, COBS, DEPP and COLL.
Consultation closes on 12 February 2024.