Access to Financial Services Markets Overseas Funds Regime Additional requirements
As the concept of outcomes-based equivalence means that the UK and overseas regulatory frameworks do not need to be identical, there may be circumstances where a country meets the standard of equivalent investor protection, but it is desirable to specify additional requirements as a condition of marketing in the UK.
	Additional requirements may also be applied to MMFs wishing to market to retail investors through the OFR, which meet the MMFR equivalence standards and the standard of equivalent investor protection. MMFs which meet the MMF equivalence standards, but market to UK investors through section 272 of FSMA or by notifying through the National Private Placement Regime (NPPR), as explained below, will not be subject to additional requirements.
	Additional requirements can only be applied to schemes which already meet the equivalent investor protection test and MMFR equivalence, in the case of MMFs. Therefore, it will not be possible to use these additional requirements to address fundamental shortcomings in the overseas regime, because a country’s regime must offer equivalent investor protection, and MMF equivalence in the case of MMFs, as a precondition of an equivalence determination. Additional requirements may be used to provide consistency with the UK regime where necessary.
	Additional requirements may not be necessary in all cases and would be based on aspects of the UK framework which were judged to be important to ensure consistency or comparability between overseas schemes and those on offer in the UK. Examples may include the requirement for schemes to have independent directors or complete value assessments.
	If additional requirements are necessary, they will be set out in the statutory instrument used to give effect to the equivalence determination. The FCA will have the power to make rules in relation to the additional requirements as specified by HM Treasury, to the extent that these may be necessary to provide further clarity to schemes on how they may be expected to comply. This power will not permit the FCA to establish new additional requirements which go beyond what is specified by HM Treasury.