UK: Temporary Permission Regime - Update – October Deadlines

Last Updated: 24 September 2019
Article by Tara O'Callaghan

This briefing is relevant for all asset managers and AIFMs who intend to market UCITS/AIFs into the UK post Brexit which is currently expected to occur on 31st October 2019 ("Brexit Date"), including those already registered for the FCA Temporary Permissions Regime ("TPR").

It aims to ensure that all UCITS/sub-funds/AIFs marketing into the UK are fully registered for the FCA Temporary Permission Regime ("TPR") in advance of Brexit Date to ensure a smooth transition in the event of no withdrawal agreement being agreed between the UK and the EU, i.e. a hard Brexit.

Any UCITS sub-funds or AIFs authorised before Brexit Date which do not register for the TPR in advance of Brexit Date will not be permitted to market into the UK post Brexit Date.

Managers/AIFMs should allow sufficient time post authorisation of new funds to allow the UCITS passporting registration (10 working days) or AIFMD passporting application (20 working days) to be transmitted to the FCA and the subsequent TPR registration to be made prior to 30 October 2019.

To update an existing TPR notification

Many UCITS and AIFs (via the relevant AIFM) will already have registered for the TPR prior to the initially proposed Brexit deadline of 31st March 2019. However many asset managers will need to update those registrations to include the following:

  • additional sub-funds registered to market in the UK (or to be registered to market prior to 30th October 2019 deadline) since the initial TPR application, or
  • to amend the details included in the initial TPR application.

Any asset managers/AIFMs that wish to update their notification must notify the FCA by emailing recognisedcis@fca.org.uk by the end of 16th October 2019. Such notification should simply state the intention to update their previous TPR notification and should include the relevant FCA reference number (FRN).

The FCA will acknowledge such requests to update existing TPR notifications and will be in contact with firms which have notified an intention to update their notification with details of the steps fund managers will need to take. The revised notification must be made as a single application including a full list of all sub-funds/AIFs to be registered for the TPR (including those sub-funds/AIFs included in the initial TPR notification and all additional sub-funds/AIFs). The updated notification must be made in advance of 30th October 2019.

To register for the TPR for the first time

Asset managers/AIFMs that have not previously registered their UCITS/AIFs for the TPR should do so prior to 30th October 2019.

Registration for the TPR is through the FCA connect system, with the operator (usually the Manager or AIFM) indicating all UCITS sub-funds/AIFs it wishes to enter into the regime. Registration is straightforward and further information on the TPR and how to register is provided on the FCA website at the following links:

https://www.fca.org.uk/brexit/temporary-permissions-regime#funds

https://www.fca.org.uk/brexit/temporary-permissions-regime/temporary-marketing-permission-regimes

No change to existing TPR notification

Where a TPR registration has already been made and there are no further changes to the initial notification and no additional sub-funds have been registered for marketing in the UK since the initial application, no further action is required.

New UCITS sub-funds authorised post-Brexit

The FCA has clarified that the TPR will also be available post Brexit to additional UCITS sub-funds authorised after Brexit Date where it is possible to demonstrate that at least one other sub-fund in the relevant umbrella has registered with the FCA and opted into the TPR before Brexit Date. This will allow UCITS registered for the TPR to market newly authorised sub-funds within the umbrella in the UK post-Brexit Date. However, all UCITS sub-funds authorised prior to Brexit Date must have registered for the TPR in advance of the appropriate deadlines set out above.

AIFs

As the AIFMD passport applies to the AIFM and not the AIF itself, the TPR will not be available to AIFs authorised post Brexit Date nor AIFs authorised prior to Brexit Date which did not enter the TPR. Such AIFs will need to rely on the UK third country national private placement rules.

What is the TPR?

The TPR is a medium term initiative by the FCA to address continuity for UCITS and AIFS registered to market into the UK in the event of a hard "no-deal" Brexit.

In the event of a hard Brexit without an implementation period, the existing UCITS/AIFMD passporting regime will fall away when the UK leaves the EU. It is intended that the temporary permissions regime will provide a temporary solution to ensure firms and investment funds can continue their business with minimal disruption.

It will allow inbound UCITS/AIFs to continue operating in the UK within the scope of their current permissions for a limited period (up to 3 years) after Brexit Date, while seeking full UK authorisation, allowing investment funds with a passport to continue temporarily marketing in the UK.

As the TPR is a temporary initiative, it is proposed that following a hard Brexit the FCA will advise registered funds and firms of "landing slots" within the three year period during which they will have to apply for full FCA authorisation. Further detail on such procedures or requirements is not yet available.

Managers/AIFMs should continue to follow the current process via their home member state regulator for registering new UCITS/AIFs in advance of 30th October 2019.

AIFMs passporting services into the UK must also register their firm for the TPR under a separate application.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions