Skip to content

European fund managers secure long-term UK market access


The Treasury has confirmed that European fund managers will be able to submit applications to the FCA to market their products to UK investors. 

In a statement to MPs on 30 January, Economic Secretary to the Treasury Bim Afolami said European Economic Area (EEA) states will now be considered ‘equivalent’ under the Overseas Funds Regime (OFR) for UCITS, excluding money market funds.

‘The government does not intend to require the funds assessed to comply with any additional UK requirements as part of this equivalence determination at this time,’ he said. 

Enacted as part of the Financial Services Act in 2021, the OFR is the new regime under which overseas investment funds can continue selling to UK retail investors following Brexit.

Fund managers will now be able to apply individually to the FCA for recognition of their schemes, with the expectation this will be granted provided the scheme meets the conditions set out by the government. 

Secondary legislation will be required to enact this equivalence decision, which will be monitored on an ongoing basis in light of UK and EEA regulatory developments. 

Before the UK left the EU, EEA UCITS could readily be marketed to UK retail investors thanks to the UCITS marketing passport regime. However, the ability for UCITS to passport into and out of the UK was revoked after Brexit.

EEA funds which were marketed in the UK prior to Brexit have so far remained available under temporary arrangements. According to the Financial Times, there are more than 8,000 EEA-based funds with temporary access to the UK.

The Temporary Marketing Permissions Regime, which was due to expire at the end of 2025, has now been extended until the end of 2026, to ensure funds can transition smoothly to the new Overseas Funds Regime.