UK FCA delays changes to the concentration rule for collective investment schemes

The UK Financial Conduct Authority (FCA) has published Handbook Notice No 137, confirming that it is delaying changes to the Collective Investment Schemes Sourcebook (COLL), and specifically to the concentration rule (COLL 5.2.29R). The concentration rule governs the ability of UK undertakings for the collective investment in transferable securities funds to invest in other collective investment schemes. The FCA previously made changes, which came into force on 31 January 2025, which seek to clarify the level at which the restrictions apply (including for sub-funds of umbrella schemes). These changes were subject to a transitional period. The transitional period is now extended to 31 January 2027 from the previous expiry date of 30 January 2026, as provided for by the Collective Investment Schemes Sourcebook (Concentration Limits) Instrument 2026. This instrument entered into force on 29 January and feedback is published in Chapter 3 of the notice.

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