Asset managers often set up their investment funds internationally, marketing their funds both to investors in the UK and around the world. Many of the investment funds currently marketed in the UK are domiciled in the EU, gaining market access into the UK through the EU passporting regime. Following the UK’s departure from the EU, the passporting regime will cease at the end of the transition period. The Government has introduced a temporary regime to allow EU funds to continue marketing in the UK in a similar way for a limited time after the end of the Transition Period, after which the funds will have to gain permanent market access into the UK.
This consultation sets out the government’s proposal for a new process for allowing investment funds domiciled overseas to be sold to UK investors, to replace the existing regime, which is not viable over the long-term. The proposed ‘overseas funds regime’ will introduce two new regimes based on the principle of equivalence: one for retail investment funds and one for money market funds.