The Association of International Life Offices (AILO) has issued a warning to advisers over the UK’s FCA Overseas Funds Regime.
In a statement AILO said that cross-border life products have provided wealthy customers with the opportunity to link a wide variety of investment assets to a tax efficient product structure for many years.
In consultation with its Members, the Investment Committee of the Association of International Life Offices (AILO) continues to monitor changes in the regulatory environment that may impact international bonds.
Accordingly, AILO said it was urging UK advisers to keep abreast of the incoming regulations which are likely to affect the range of funds they will be able to promote to UK retail investors.
The UK FCA has introduced the new Overseas Funds Regime (OFR) which serves as a gateway, enabling certain investment funds established outside the UK to be promoted in the UK, including to retail clients.
Funds that achieve ‘recognised scheme’ status under the OFR can be promoted in the same way as an authorised collective investment scheme established in the UK.
The OFR will replace the Temporary Marketing Permissions Regime (TMPR), which was a transitional arrangement following the UK’s withdrawal from the EU.
Existing schemes registered under the TMPR have been allocated landing slots to register with the OFR from October 2024 to September 2026.
Andrew Jones, chair of the AILO Investment Committee, said: “AILO reminds advisers that only overseas funds registered with the OFR or TMPR can be promoted to UK retail clients, including where a promotion is linked with an international bond.”
