On 14 May 2024, a statutory instrument (SI) – the Financial Services and Markets Act 2000 (Overseas Funds Regime) (Equivalence) (European Economic Area) Regulations 2024 – was published on legislation.gov.uk.

The SI enacts the equivalence decision, announced by the Government in January 2024, for EEA states under the UK’s Overseas Funds Regime (OFR).  It establishes that, for the purposes of section 271A of the Financial Services and Markets Act 2000, HM Treasury is approving each EEA state, including the 27 Member States of the European Union, and Norway, Iceland, and Liechtenstein.

The effect of this determination is to enable undertakings for collective investment in transferable securities (UCITS) authorised in any EEA state (except those UCITS that are authorised as money market funds) to market to any UK client, subject to those funds being recognised to do so by the Financial Conduct Authority.

An explanatory memorandum, published alongside the statutory instrument, explains that given the importance of EEA-authorised funds to UK investors, it was decided that the first jurisdictions to be assessed for equivalence under the OFR should be the EEA states.

The SI comes into force on 16 July 2024.