The FCA has updated its website to explain its proposed process for adding a new sub-fund to an umbrella scheme that will be in the temporary marketing permissions regime (the "TMPR").
The TMPR applies to UCITS funds which were already passporting into the UK before 11pm on 31 December 2020. The regime extends to new sub-funds of the UCITS.
In order to use the regime, the sub-fund will need to satisfy the following conditions specified under regulation 63(3) of the Collective Investment Schemes (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 1 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 1 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
- 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
The FCA plans to give a direction on 31 December 2020 setting out the information that will be needed to make a valid notification of a new sub-fund. The FCA has, however, published a draft version of the direction and a draft notification letter which can be found on the FCA’s website.