On 4 December 2023, the FCA published a consultation (CP23/26) on implementing the Overseas Funds Regime (OFR). The FCA are proposing to make new rules and guidance so that overseas funds can apply to the FCA for recognition and know which FCA rules they will need to comply with. Also, the FCA have clarifed how they intend to use the powers given to them under the OFR legislation, including proposals for:
- Data they propose to collect as part of the OFR application process, as well as information they intend to collect on an ongoing basis if recognition is granted.
- Requirements for pre-sale disclosure, including about the lack of, or limitations on, FOS and FSCS coverage for UK investors.
- How they plan to refuse applications for recognition or suspend or revoke a scheme’s recognised status, where necessary.
- The process for public censure of the operator of an OFR recognised scheme.
- Application and periodic fees applicable to OFR recognised schemes.
The FCA have asked for feedback by 12 February 2024. They plan to publish a final policy statement and final Handbook rules in the first half of 2024. AREF's Public Policy Committee have agreed that AREF won't be responding to this consultation.
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