On 17 July 2024, the Financial Conduct Authority (FCA) published Policy Statement PS24/7 on implementing the Overseas Funds Regime (OFR). In PS24/7, the FCA sets out the final rules and guidance necessary to implement the OFR, as well as responding to feedback to its consultation CP23/26.
The new gateway for eligible funds to apply for recognition under the OFR is due to open later in 2024 (in September for new schemes, and in phases starting in October for funds currently in the temporary marketing permissions regime). The FCA explains that the new rules are intended to promote effective competition in the interests of consumers, by offering UK investors a broad choice of investment funds.
Some changes have been made to the rules and guidance since the FCA consulted on them in CP23/26, including adding further clarification on certain points and removing the proposed 30-day period between notifying the FCA of changes to OFR funds and when those changes could take effect in the UK.
The final Handbook rules and guidance to support the implementation of the OFR will come into force on 31 July 2024.
For more information on the OFR, please see our briefing and podcast.