The Treasury and Financial Conduct Authority have revealed a roadmap for the roll out of a new overseas fund regime.
The regime will mean European funds can be recognised in the UK and marketed to British investors.
Sarah Pritchard, executive director of markets and international at the FCA, said: "We want to make sure that consumers have as much choice as possible. That’s why we are investing in our systems to make sure that the overseas funds recognition process is smooth and efficient."
The two bodies also announced the existing temporary marketing permissions regime would be extended until the end of 2026, meaning funds recognised under this regime can continue to be marketed until then.
The roadmap showed in the July this year the FCA's final rules for the new overseas fund regime are expected to come into effect.
While in the third quarter of this year the government intends to consult on the application of sustainability disclosure requirements (SDR) and labelling for OFR funds - depending on the outcome of this and the legislative changes needed, this is expected to come into force in the second half of 2025.
Grania Baird, partner at law firm Farrer & Co, said: "The publication of the FCA’s and Treasury’s roadmap to introduce the overseas fund regime will be hugely welcome news for the sector.
"This will go a long way in providing assurance and injecting confidence for new European-based funds not currently in the TMPR, many of which have wanted to launch in the UK but have been put off by the onerous regime currently in place.
“With this new roadmap, we finally have some positive news on how EU UCITS funds can access the UK market, with a firm timeline and confirmation that funds not currently in the FCA’s temporary regime will be able apply for recognition under the new regime from September.
“This is also a positive development for UK investors, as provided the timeline is stuck to, they will have a greater choice of funds to invest in as of this Autumn.”
Economic secretary to the Treasury, Bim Afolami, called the new regime a pivotal moment for UK investors.
He added: "By streamlining the process for overseas investment funds, we are offering UK investors more choice in a more competitive investment landscape. This is all part of our plan to maintain an open and dynamic financial market."
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
