In this episode of the Clear, Fair and Not Misleading podcast, featuring Wayne Green and Gareth Malna, the hosts discuss the new Overseas Funds Regime (OFR) for European funds marketing in the UK.
Key points covered:
The OFR replaces the temporary marketing permission regime (TMPR) post-Brexit, requiring European funds to register with the FCA through a new process.
Funds must have UK-authorised entities approve their communications and marketing materials, regardless of whether they target retail or institutional investors.
The UK's approach to value assessment is more rigorous than Europe's "undue cost" regime, requiring funds to demonstrate how they calculate and justify value.
Platforms and distributors require evidence of proper value assessment, which has led to the development of "AOV lite" or "undue cost plus" approaches for European funds.
There are new requirements around facilities maintenance in the UK, with implications for how funds handle subscription and redemption orders.
For further resources from this episode go to:
The episode emphasises how European funds must adapt to UK regulatory standards while maintaining market access, even though they're not directly regulated by the FCA...
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