General Overseas Funds Regime
Asset management: Asset management firms manage the savings and pensions of millions of UK citizens. They raise capital from investors and allocate it across the wider economy. 75% of UK household use an asset manager’s services either directly or indirectly, for example through workplace pensions.
Collective investment schemes: A collective investment scheme, as defined in section 235 of FSMA, is in summary:
(a) any arrangements with respect to property of any description, including money, the purpose or effect of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income; and
(b) which are not excluded by the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 (S.I. 2001/1062).
Depositary: A depositary is any person to whom the fund property is entrusted for safekeeping.
Equivalence: Equivalence is a mechanism by which one jurisdiction can recognise relevant standards in another jurisdiction as equivalent to their own and is a principle that applies in many areas of Financial Services legislation
Investment Association: The trade body for the UK asset management industry.
Investors: An investor is a person or entity who puts their money into financial schemes with the expectation of receiving financial returns. An investor may range from a retail investor, or individual looking to invest their savings or pension, to an experienced institutional investor.
MMFs: Money Market Funds. An MMF is a type of collective investment scheme often used as a cash management tool by financial institutions, corporates and governments. They typically invest in cash and government or corporate debt.
MMFR: Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds, as it forms part of retained EU law.
National competent authority: The regulator responsible for regulating and supervising an investment fund in the country or territory where it is domiciled.
NPPR: National Private Placement Regime. The NPPR allows the marketing to professional clients in the UK of non-UK funds, or UK funds managed by a non-UK fund manager, that in either case are not UK-authorised or recognised funds.
OFR: Overseas Funds Regime.
Passporting rights: Rights for a firm authorised in one EEA state to carry on in any other EEA state activities that it has permission for, by either establishing a branch or agents in that other EEA state or providing cross-border services.
Pooled funds: Pooled funds are a number of funds from many individual investors that are grouped together for the purposes of investment. Examples include pension funds, hedge funds, mutual funds and exchange traded funds.
Retail schemes: Collective investment schemes which are marketed to retail investors, individuals when they invest their personal savings and pensions. Due to the target audience of retail schemes, they are more carefully regulated and have more strict requirements for consumer protection.
TMPR: Temporary marketing permissions regime. The TMPR allows EEA UCITS that have exercised their rights to market in the UK before the end of the Transition Period to continue to market to retail investors in the UK for a limited period.
UK-domiciled schemes: A ‘domicile’ is the country where a fund is set up legally. Any scheme that is legally set up in the UK, is a UK domiciled scheme.