Legal Updates

UCITS KIID to be retained for UK market

The FCA has confirmed in an update to its website that a UCITS KIID will continue to be required for investors in the UK post 1 January 2023 when most EU UCITS are expected to move to the European PRIIPs KID format.

This will result in UCITS registered to market in the UK having to prepare two sets of key investor documentation, with divergent formats and calculations for the next few years until the UK PRIIPs Regulation is introduced, currently deferred until 31 December 2026.

The FCA included the following new section addressing the obligation to provide a UCITS KIID to retail investors in the UK on its website:

Disclosure requirements for EEA UCITS

In the UK the exemption from the requirement for EEA UCITS to produce a PRIIPs KID lasts until 31 December 2026. We can confirm this exemption applies to both EEA UCITS recognised under s272 FSMA and those recognised under TMPR. This means, when being marketed to retail investors in the UK, EEA UCITS that are recognised under either s.272 FSMA or the TMPR must produce a UCITS KIID.

We also note that the TMPR is due to end on 31 December 2025. We are engaging with the Treasury on the disclosure requirements that would apply in the event of an equivalence decision under the Overseas Funds Regime.

The full webpage is available from https://www.fca.org.uk/brexit/...

In addition, the publication of the Financial Services Markets Bill in recent days introduces broad powers for HM Treasury to modify or restate retained EU onshored regulation. It is likely that the basis of equivalence between UK and European regulation will shift further over the coming years.

If you have any questions please contact any member of the fund registrations team at fundregistrations@dilloneustace.ie or your usual Dillon Eustace contact.