On 31 January 2025, the Financial Conduct Authority (FCA) published Handbook Notice 126.

This Handbook Notice describes the changes that the FCA Board made to the Handbook on 30 January 2025. On that date the FCA Board approved the Collective Investment Schemes Sourcebook (Concentration Limits) Instrument 2025. In summary, this instrument, which came into force on 31 January 2025, makes changes to an existing rule that sets limits on the ability of a UCITS scheme to hold units of other collective investment schemes. The rule aims to reinforce appropriate risk diversification in a UCITS fund of funds. The changes clarify how the rule applies to umbrella/sub-fund structures, and disapply the rule in certain situations where the investing UCITS scheme and second scheme are managed by the same firm.