UK Regulator Provides Guidance on Operational Impact of Overseas Funds Applying for Recognition

The Financial Conduct Authority has updated its webpage on the overseas funds regime providing guidance on the operational impact for operators of funds in the temporary marketing permissions regime. The FCA explains that for operators of funds in the TMPR that make an application to be recognized in the U.K. under the OFR, it is important for the fund population data at the beginning of the landing slot window to be accurate and stable. The FCA requests operators not to make any changes to the fund population data during the allotted landing slot and to plan accordingly.

Key points of interest include:

• change of operator - once the FCA has issued a landing slot direction, and until an application for recognition has been determined, the FCA cannot take account of any change of operator (management company) for an EEA UCITS within the TMPR. Firms must wait until the scheme is recognized in the U.K. under the OFR for an operator to be changed.
• addition of new sub-fund(s) - currently, operators of umbrella EEA UCITS in the TMPR can add a sub-fund of that umbrella to the TMPR if the sub-fund has been authorized since the U.K. withdrew from the EU. The latest point at which operators will be able to continue to add sub-funds in this way is two weeks before the opening of their umbrella landing slot. If an operator wants to add new sub-funds after that point, it will need to wait until the umbrella has been recognised in the U.K. under the OFR.
• addition of sub-fund(s) authorized prior to December 31, 2020 (not notified under the TMPR) - currently, operators of umbrella EEA UCITS in the TMPR cannot add a sub-fund of that umbrella to the TMPR if the sub-fund was authorized before the U.K. withdrew from the EU. The operator will need to apply within its landing slot for recognition under the OFR of the umbrella and the sub-funds within the TMPR. Once that recognition has been granted, recognition of additional non-TMPR sub-funds can then be applied for.

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