Selected regulatory updates of interest to the funds and asset management sector. This update reports on a UK FCA update on the temporary marketing permissions regime.
- TMPR: FCA webpage on adding new sub-fund to umbrella scheme
TMPR: FCA webpage on adding new sub-fund to umbrella scheme
The UK Financial Conduct Authority (FCA) has published a new webpage on adding a new sub-fund to an umbrella scheme that will be in the temporary marketing permissions regime (TMPR). To use the TMPR, a sub-fund must satisfy the following conditions specified in regulation 63(3) of the Collective Investment Schemes (Amendment etc) (EU Exit) Regulations 2019 (SI 2019/325) (the CIS Regulations):
- the new sub-fund must become 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 one 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 one other sub-fund of the umbrella scheme continues to be so authorised, the operator of the new sub-fund must have notified the FCA that they wish the new sub-fund to enter the TMPR; and
- the notification must be given before the start of the period specified by the FCA directing the new sub-fund's umbrella scheme to apply for individual recognition under section 272 of the Financial Services and Markets Act 2000 (FSMA).
The FCA plans to give a direction on 31 December 2020, under regulation 64 of the CIS Regulations, setting out the information required to make a valid notification of a new sub-fund.
Before the TMPR takes effect, the FCA has published a draft direction and a draft notification letter for reference. These documents are subject to change and for information purposes only.
The new regime applies to sub-funds authorised on or after 31 December 2020. Sub-funds authorised by their relevant home state regulator before this date must be included in a fund manager's TMPR notification.
The FCA has also updated its webpage on the types of firms and investment funds that can use the TPR, and its webpage on the notification process for funds, to reflect this development.