UCITS passporting in the United Kingdom

Following the expiry of the transition period in respect of the arrangements for the UK’s withdrawal from the EU on 31 December 2020 in the absence of agreement otherwise between the UK and the EU, all non-UK funds, including EEA UCITS, are classed as third-country AIFs in the UK.  

This means that EEA Management Companies that have not made use of the UK’s short term temporary marketing permissions regime in respect of the EEA UCITS they manage, need (unless they are recognised under s 272 of the Financial Services and Markets Act 2000), to comply with the UK’s National Private Placement Regime and the UK’s financial promotion rules (as applicable). 

A summary of the UK private placement regime can be found at Private placement rules and law in the UK | CMS Expert Guides. 

However, the UK government has made provision for a new overseas funds regime (OFR) through the Financial Services Act 2021. When it comes into force, the new system will give the UK Treasury the ability to determine whether a third country jurisdiction and funds established in that jurisdiction are equivalent to a UK authorised fund (these are funds which have been approved by the FCA for marketing to retail investors in the UK). This will allow them to benefit from a simplified process to enable marketing to UK retail investors.