In our legal update on the post-Brexit temporary permissions marketing regime we had noted that the regime was to be limited to funds established and in the marketing phase prior to Brexit. This would clearly be a concern to the managers of more complex funds as it could leave additional sub funds and similar vehicles linked to a pre-Brexit main fund outside that regime.
This was a point we raised in the regulatory consultation, and we have received confirmation that the draft Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations laid before Parliament have now been modified by HM Treasury to enable sub-funds which become authorised by their home state regulators on or after exit day (new sub-funds) to enter the temporary permissions regime (TPR). However, this only applies if at the point of exit at least one other sub-fund of the new sub-fund’s umbrella scheme is covered by the TPR, and the FCA is notified of the new sub-fund’s addition to the TPR.
This is proof positive that the regulators are listening and do respond to industry comments, so it is very much worthwhile to submit your thoughts. Please do also get in touch with us if you have any queries on how a proposal might affect your interests, or for help formulating what you might say in response to a consultation. We are also happy to receive general industry feedback in order to inform our own consultation responses.