UK Draft Regulations Amending Temporary Recognition and Marketing Regimes for CCPs and Collective Investment Schemes

A draft version of the Collective Investment Schemes (Temporary Recognition) and Central Counterparties (Transitional Provision) (Amendment) Regulations 2024 has been published, alongside a draft explanatory memorandum. The Regulations amend the Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018 to remove the requirement that a CCP must continue to be recognized in the EU to remain in the temporary recognition regime for overseas CCPs.

The draft Regulations also make amendments to the Collective Investment Schemes (Amendment etc.,) EU Exit Regulations 2019, which established the temporary marketing permissions regime for EEA investment funds. These amendments include:

• Extending the duration of the TMPR from five to six years (that is, until December 31, 2026). This reflects HM Treasury's policy announcement made in January 2024.
• Making technical amendments to the TMPR to ensure that sub-funds are able to transition smoothly to the overseas funds regime on direction by the Financial Conduct Authority where they are in scope of the U.K. Government's equivalence decision concerning EEA states or alternatively apply for recognition under FSMA.
• Making technical amendments to how the TMPR accounts for sub-funds, including in relation to different compositions of umbrella schemes.

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