Overseas Funds Regime to offer fast application process for 'equivalent' EEA

Over 8,000 funds that are based overseas but are currently recognised in the United Kingdom could be able to use a streamlined online application form. This will become available when the current Temporary Marketing Permissions (TMR) system is replaced by a new system, the Overseas Funds Regime (OFR), at the end of 2025.

By Neasa MacErlean

The Financial Conduct Authority iscurrently consultingon its proposed new arrangements, asking for feedback by 12 February 2024. The OFR system is being designed now so that it will be ready for operation when the UK Government decides which overseas jurisdictions qualify as 'equivalent'. Such a decision would enable funds based there to apply to be recognised under the OFR. Equivalence is expected to be recognised within the European Economic Area - in Ireland and Luxembourg in particular, where, according to the FCA, most of these 8,366 funds are based.