The new Overseas Funds Regime (OFR) will give investors
more certainty, replacing current transitional arrangements with
more permanent access to funds.
Today (1 May 2024), the government and the Financial Conduct
Authority (FCA) have jointly
issued a roadmap for
implementing the OFR for certain funds
from the European Economic Area (EEA).
The new regime applies to overseas investment funds, allowing
them to apply to become recognised in the UK and marketed to
British investors.
The majority of the funds currently able to market to UK retail
investors are based in the EEA. Today's announcement
therefore ensures UK investors will continue to benefit from the
choice these funds provide, with the assurance that they come
from a country with equivalent consumer protections.
Economic Secretary to the Treasury, , commented:
This new regime represents a pivotal moment for UK investors and
marks a significant step forward in bolstering the UK's
investment landscape.
By streamlining the process for overseas investment funds, we are
offering UK investors more choice in a more competitive
investment landscape. This is all part of our plan to maintain an
open and dynamic financial market.
Sarah Pritchard, Executive Director of Markets and
International, FCA, said:
We want to make sure that consumers have as much choice as
possible. That's why we are investing in our systems to make sure
that the overseas funds recognition process is smooth and
efficient.
The government and the FCA are dedicated to
ensuring that the UK remains a global leader in financial
services, fostering competition alongside innovation and investor
protection. The OFR stands as a testament to
this commitment, heralding a new era of industry competition and
consumer choice.
Today's announcement follows the Mansion House and
Edinburgh Reformswhich
have encouraged growth in the UK's capital markets, helping to
unlock £75 billion in equity funding to businesses scale up.
