Europe-domiciled funds exempt from Consumer Duty requirements under Overseas Funds Regime

Regulatory equivalence recognised

Funds from the European Economic Area will not be required to comply with additional UK rules, including the Consumer Duty, under the Overseas Funds Regime, Investment Week understands.

Following a speech confirming the introduction of OFR by economic secretary to the Treasury Bim Afolami yesterday (30 January), the government has determined that the EEA states hold equivalence in relation to financial services regulation. This means that funds domiciled in the EEA will not have to comply with additional UK rules, including the Consumer Duty, Investment Week understands Treasury facilitates long-term UK market access for European fund managers However, EEA-domiciled funds will still need to abide by certain retail disclosure requirements. Sustainability Disclos...