Investment Association's Capper: General election will not hugely delay OFR timeline

The FCA and UK Treasury’s timeline for OFR applications is likely to face only ‘slight slippage’

Jamie Gordon

Peter Capper, senior adviser of international fund regulation at The Investment Association, has said the timeline for UCITS umbrellas to submit applications under the Overseas Funds Regime (OFR) will likely face only “slight slippage” following the UK General Election in July.

In a recent ETF Stream webinar titled ETF Investigations: Brexit’s Impact On The European ETF Market, Capper said statutory instruments concerning the Temporary Marketing Permissions Regime (TMPR) had not been laid before Parliament ahead of it closing in the lead up to the election.

Prior to the election being announced, the Financial Conduct Authority (FCA) and UK Treasury published a timetable of OFR stages in March.

“According to that timetable, the FCA will be publishing its policy statement on the OFR in July and applications for the OFR will open from September. There are also various stages to extend the original TMPR to allow more time to get applications in,” Capper said.

“They have also indicated when landing slots will be allocated to individual firms to transition from the TMPR to the OFR and it is certainly important to try and meet those landing slots because if you miss, you are now out of the TMPR.”

However, Capper said a first statutory instrument was brought before Parliament before it closed for the General Election, enabling the FCA to view UCITS vehicles as equivalent.

“There is a second instrument that has not gone in which would have extended the TMPR and also had some detail on if an issuer has an umbrella which has UCITS and non-UCITS.

“So, there will be something to sort out after the election with the TMPR which does possibly influence the timetable slightly,” Capper added.

“We are not expecting any huge delays, but maybe slight slippage in the timetable.”

Speakers in this webinar include:

  • Peter Capper, senior adviser of international fund regulation at The Investment Association

  • James Hodgson, senior associate at Arthur Cox

ETF Investigations is a new webinar series from ETF Stream which examines the key issues facing ETF investors in Europe. To watch a full replay of this webinar, click here.

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