The Financial Conduct Authority (FCA) said funds, including ETFs, will be able to apply for recognition under the Overseas Fund Regime (OFR) before the end of this year.
In a paper published on 17 July, the FCA said the OFR gateway will open later this year and included “landing slots” for issuers of overseas funds.
The move comes after the UK government granted equivalence for UCITS ETFs under the Overseas Fund Regime in January this year.
This meant that equivalence would be granted for all UCITS vehicles in the European Economic Area (EEA) including EU-member states and means that asset managers will continue to be able to sell UCITS ETFs in the UK.
OFR is set to replace the Temporary Marketing Permissions Regime (TMPR), due to end in December 2025.
The regulator added: “We expect that most funds currently using the TMPR that wish to continue marketing to UK investors will transition to the OFR.”
Despite confirmation that ETFs will be included under OFR, questions remain over whether ETFs will be required to comply with the Sustainable Disclosure Requirements (SDR).
Shortly after the Treasury granted equivalence for UCITS ETFs it launched a consultation on broadening the scope of the Sustainable Disclosure Regulation (SDR) to include overseas funds.
“The government aims to lay any legislation required to implement its decision on SDR and labelling for OFR funds by the end of 2024,” the regulator said.
The FCA noted any government legislation on SDR would be subject to a consultation on he related rules or guidance.
