Action Required: Navigating the UK's Overseas Fund Regime

The change presents both challenges and opportunities for fund managers with UK-domiciled funds, bringing about a new era in fund registration that we all need to take action to prepare for.  

The OFR, implemented by the Financial Conduct Authority (FCA), marks a pivotal shift in how overseas funds gain access to the UK market. Here are the key points: 

Transition from TMPR: Funds currently benefiting from the Temporary Marketing Permissions Regime (TMPR) must transition to the OFR. 

Structured Application Process: The FCA introduced 'landing slots' for TMPR funds to apply through its online system, allocated alphabetically based on the management company's name. If your firm’s name begins with a letter early in the alphabet, your landing slot could be as early as October.  

New Funds: Non-TMPR funds will be able to submit applications from 30 September 2024. 

Increased Complexity: The OFR process is more detailed and complex than anticipated, with additional regulatory requirements around ESG and Consumer Duty. 

The urgency of compliance 

The stakes are high for fund managers who fail to navigate this transition successfully: Missing your designated landing slot could result in losing authorization to market your fund to retail investors in the UK. In the case of non-compliance, all investors may be required to exit your fund, which would cause not just financial but reputational damage. And a delay in registration represents a missed opportunity to enter your fund into the UK market on time.  

At FE fundinfo, we've been at the forefront of this regulatory shift, working closely with the FCA to understand and streamline the OFR process for our clients.  

Martin Neason, FE fundinfo’s head of Global Fund Registration said, "With the OFR shaking things up for UK fund registration, we've been in close talks with the FCA which helped us see what's coming down the line. It's not just about ticking boxes – we're here to guide our clients through this maze without eating up all their time and resources.”   

Our Global Fund Registration is a professional service that offers: 

• Comprehensive Platform: Our service covers 73 countries, including extensive experience with UK registrations for over 140 funds. 
• “Golden Source” of Truth: We manage the entire registration data lifecycle, ensuring accuracy and compliance from cradle to grave. 
• Complexity Management: Our team of experts handles the intricacies of the OFR process, allowing you to focus on your core business. 

Neason added, “Our goal is to help fund managers weather this storm and come out the other side with their UK market presence not just intact, but stronger than ever. It's a challenge, but it's one we're ready to tackle head-on with our clients." 

Act now to secure your UK market presence 

Whether your landing slot is swiftly approaching or you're a new fund looking to enter the UK market, now is the time to prepare.  

With years of experience in the UK and European fund markets, we know that non-compliance comes with severe consequences. That’s why we want to be your guide through this and future regulatory hurdles. Our comprehensive platform, expertise and dedication to client success make us the ideal partner for navigating critical regulatory changes. 

Explore now and contact FE fundinfo today to keep your funds compliant and maintain their position in the UK market.