On Wednesday, Britain unveiled its plan to authorise European Union investment funds after Brexit, with the goal of ensuring continuity and choice for UK investors. The Overseas Funds Regime (OFR) will replace temporary licenses, allowing non-UK funds to be authorised for sale in the UK.
This move aligns with Britain’s commitment to providing long-term market access for EU investment funds without imposing additional costly requirements. The roadmap involves legislative initiatives, such as a public consultation on prospective sustainability labelling standards for funds to prevent ‘greenwashing’.
If implemented, these rules could go into effect by the second half of 2025. The Financial Conduct Authority (FCA) emphasises the importance of effective mechanisms for recognising overseas funds and intends to review data reporting by funds to ensure proper oversight. The government and the FCA will decide how to apply the new rules to OFR-recognised funds.
Sarah Pritchard, the FCA’s executive director for markets and international, emphasises the significance of customer choice and effective recognition systems.
The plan seeks to ensure a smooth transition for EU investment funds operating in the UK while upholding investor safeguards and market integrity.
