Tuesday January 12 2021

News Source: Fund Regulation

Focus: UCITS

Type: General

Country: UK




The Financial Conduct Authority (FCA) has updated its website to explain its proposed process for adding a new sub-fund to an umbrella scheme that will be in the temporary marketing permissions regime (the “TMPR”).

The Collective Investment Schemes (CIS) Regulations create a UK-wide TMPR for Undertakings for the Collective Investment in Transferable Securities (UCITS) funds which were already passporting into the UK before the end of the transition period. The Regulations have extended this regime to new sub-funds.

To use the regime, a sub-fund will need to satisfy the conditions specified in regulation 63(3) of the CIS Regulations:

  • the new sub-fund becomes authorised by its home state regulator on or after 31 December 2020
  • when the new sub-fund becomes authorised by its home state regulator, at least 1 other sub-fund of the new sub-fund’s umbrella scheme must be a recognised scheme in the TMPR
  • after the new sub-fund becomes authorised by its home state regulator and while at least 1 other sub-fund of the umbrella scheme continues to be so authorised, the operator of the new sub-fund must notify that they wish the new sub-fund to enter the TMPR
  • the notification must be given before the start of the period specified by directing the umbrella scheme to apply for individual recognition under section 272 of the Financial Services and Markets Act 2000

Notifying a new sub-fund

To promote units of a new sub-fund (i.e., of an umbrella scheme which has entered the TMPR) to the general public including retail investors in the UK, need to comply with the terms of the FCA direction and must:

  • submit the notification letter for recognition of the new sub fund
  • provide relevant documents and information as set out in notification letter, including a copy of the approval letter/attestation from the home state regulator confirming authorisation for the new sub fund happened on or after 31 December 2020
  • include in the prospectus (or supplement to the prospectus) and notification letter the address and details of facilities that will be maintained in the UK as required by COLL 9.4– for example, to allow members of the public to inspect the scheme documentation
  • provide the name(s) of the firm(s) that will carry out the marketing activities for the UCITS in the UK –also need to ensure the firm(s) has/have the necessary permission to do so under FSMA

Click on the link for further information.