Following feedback to its consultation, the FCA has confirmed in its policy statement the final rules and guidance for implementing the Overseas Funds Regime (OFR).
The new rules set out its requirements for determining an application for recognition, where collective investment schemes domiciled in jurisdictions deemed to have equivalence with the UK will be able to market to UK retail investors. The new requirements include:
- requirement for OFR fund operators to make a notification of changes to the fund;
- giving consumers clear explanations about whether an OFR fund is covered by FOS and FSCS; and
- rules and guidance allowing the FCA to make public statements about breaches of OFR regulatory rules, with the potential to suspend or revoke recognition.
In response to the feedback, the FCA has:
- removed the 30-day period between notification to the FCA of changes to OFR funds, and when those changes take effect in the UK;
- clarified which categories of changes should be notified;
- included guidance regarding disclosures for fund prospectus’ and point of sale information; and
- confirmed the UK fund prospectus requirements applicable to OFR funds.
The new Handbook rules and guidance to support the implementation of the OFR will come into force on 31 July 2024. The OFR gateway is expected to open later this year for EEA UCITS (except for money-market funds).
As a reminder, HM Treasury and the FCA published a joint roadmap in May which sets out implementation timelines and landing slots for operators of overseas funds in the temporary marketing permissions regime.