Temporary marketing permission regimes

The legislation that creates the regimes allowing fund managers to continue to market funds in the UK for a limited period after exit day has now passed into law.

Temporary marketing permission regime for EEA UCITS

The regime for EEA UCITS is set out in the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019. Part 6 of the Regulations creates a temporary extension of the marketing regime applicable to EEA UCITS.

The Regulations allow the operator of an EEA UCITS to notify us, using our Connect system, before exit day that:

  • in relation to a stand-alone scheme, the operator wishes the scheme to be treated as a ‘recognised scheme’ for the purposes of Part 17 of FSMA in circumstances where the stand-alone scheme is an EEA UCITS recognised under s264 of FSMA immediately before exit day
  • in relation to a sub-fund authorised by the relevant home state regulator before exit day, the operator wishes the sub-fund to be treated as a recognised scheme for the purposes of Part 17 of FSMA in circumstances where the sub-fund is the sub-fund of an EEA UCITS which is recognised under s264 of FSMA immediately before exit day

We have amended our direction to extend the period during which operators may submit notifications from 30 October 2019 to the end of 30 January 2020:

The Regulations also allow the operator of an EEA UCITS which benefits from the temporary marketing permission regime to market ‘new sub-funds’ in the UK after exit day, subject to certain conditions (regulation 63(3)). We will issue directions for this purpose in due course.

Temporary marketing permission regime for EEA AIFs, ELTIFs, EuVECAs and EuSEFs

The relevant statutory instrument for managers of AIFs (including ELTIFs), EuVECAs and EuSEFs as far as the temporary marketing permission regime is concerned is the Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019. With effect from 20 February 2019, the Regulations insert a new Part 9A into the Alternative Investment Fund Managers Regulations 2013 and this makes provision for a temporary marketing permissions regime which will enable:

  • an AIF, EuVECA or a EuSEF to be marketed in the United Kingdom on the same terms and subject to the same conditions as it was able to before exit day for a limited period
  • an EEA AIFM which is authorised by its home state regulator under Article 6(1) of the AIFM Directive to continue to market a UK AIF in the United Kingdom on the same terms and subject to the same conditions as it was able to before exit day for a limited period

To benefit from the temporary marketing permissions regime under these Regulations, the manager of the AIF, EuVECA or EuSEF must satisfy certain conditions, including notifying us, via our Connect system, that it wishes the relevant fund to have temporary permission to be marketed in the United Kingdom.

We have amended our direction to extend the period during which operators may submit notifications from 30 October 2019 to the end of 30 January 2020: