Overseas fund regime

While preparing for Brexit the UK Government established the Temporary Marketing Permissions Regime (TMPR) for EEA-based investment funds so that they could be marketed via a passport in the UK. The TMPR acts as a transitional mechanism while these funds seek recognition under the new Overseas Funds Regime (OFR). Further information on TMPR is available on the FCA website here.

Each fund in the TMPR has been allocated a target date or ‘landing slot’ to apply for recognition under the OFR over a two-year period starting in October 2024. If a fund applies for and is given ‘recognised scheme’ status under the OFR, it can be promoted in the same way as an authorised collective investment scheme established in the UK.

OFR recognised funds, that are not covered by the UK’s Financial Ombudsman Service and Financial Services Compensation Scheme (FSCS), need to disclose that fact and explain what alternatives (if any) are available to UK investors. Further information on the regime is available on the FCA website here.

Obtaining relevant disclosure for an OFR fund

All operators of OFR-recognised EEA funds must provide product disclosures, such as a Key Investor Information Document (‘KIID’), which contains critical information about the fund.

Clients should receive a copy of the disclosure as part of the application process for investing in a fund registered under OFR.

If you require information on the specific arrangements in place for a fund you intend to purchase for your client, we suggest that you contact the fund operator for copies of the relevant additional fund documentation. Their contact details can be found on disclosure documents.

Funds affected

A schedule of each fund and share class that applies for and receives approval under OFR will be available within a spreadsheet hosted here. This will be updated frequently over the coming months during the transition period.

These funds will also display an OFR icon within the Investment Search screen on TOL.

If your client holds a fund that either doesn’t apply within their designated time slot, or does not receive approval, then you will receive a notification advising you of the next steps.

You have responsibility for ensuring your clients are aware of any risks associated with the investments they hold. This includes the disclosures by operators of Overseas Funds Regime (OFR) funds, relating to complaints handling and eligibility for compensation schemes.

Please contact your Adviser Support Manager if you need any help or have any questions.

 

 

1. Introduction
2. Transact Online (TOL) –  Recent enhancements 
3. Integrations – mini-events
4. Trusts – the new business process
5. Overseas fund regime
6. Successions planning update – employee ownership trusts
7. Transact – BlackRock MPS update from Ben Roberts (MPS Manager)
8. A study in gifting – too late to change after death?
9. Investment bonds – topping up verses new policy
10. Salary sacrifice – is change on the horizon?
11. Interest on cash
12. Transact events 2025