On 3 December 2020, the FCA published a new webpage in which it explains the proposed process for adding a new sub-fund to an umbrella scheme that will be in the temporary marketing permissions regime (TMPR).

If new sub-funds of EEA UCITS are authorised by the relevant home state regulator after the end of the transition period, but form part of an umbrella scheme that notified for the TMPR prior to the end of the transition period, they may be added into the regime so that they can be marketed to the general public including retail investors.

To use the regime, a sub-fund will need to satisfy the conditions specified in regulation 63(3) of the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (CIS Regulations). These conditions are further described in the new FCA webpage.

The FCA plans to give a direction on 31 December 2020 under Regulation 64 of the CIS Regulations setting out the information that is needed to make a valid notification of a new sub-fund. Before the TMPR takes effect, the FCA has published, for information purposes only, a draft version of this direction and a draft notification letter for reference.

The new regime applies to sub-funds authorised on or after 31 December 2020. Sub-funds that are authorised by their relevant home state regulator before this date must be included in a fund manager’s TMPR notification.