In his statement made to the House of Commons earlier today, Bim Afolami MP, The Economic Secretary to the Treasury, notified the House about the Government’s decision regarding the equivalence assessment for states in the European Economic Area (EEA), including European Union (EU) member states, under the UK’s Overseas Funds Regime (OFR) which allows investment funds domiciled overseas to be sold to UK retail investors.
Commenting on the statement, Jonathan Lipkin, Director of Policy, Strategy and Innovation, at the Investment Association, said:
“We strongly welcome today’s confirmation from HM Treasury that UK investors will continue to benefit from the full range and choice of European funds, including ETFs. Under the regime, EEA states, including EU members, will be considered equivalent under the Overseas Fund Regime (OFR) for UCITS. It also cements the UK’s place as the leading global centre for investment management. We are pleased to see an extension to the Temporary Marketing Permissions Regime (TMPR) until 2026, allowing more time for funds in the TMPR a smooth transition to the OFR.”
“We will continue to work closely with the FCA on ensuring the application process for investment managers is smooth and efficient and look forward to engaging with Government on the SDR consultation.”
