Important information regarding the Financial Conduct Authority (FCA) Overseas Fund Regime (OFR)
The OFR has introduced a new framework that allows certain overseas investment funds to be marketed to UK investors, similar to UK-based funds.
To qualify, funds must apply to the FCA for recognition. These funds must meet specific standards set by the UK government and the FCA, ensuring they are safe and suitable for UK investors.
Key changes under the OFR:
Financial Services Compensation Scheme (FSCS) Protection: Overseas funds recognised under the OFR are unlikely to be covered by the UK's FSCS. This means that if the fund fails, UK investors are unlikely to be eligible for compensation from the FSCS.
Financial Ombudsman Service (FOS) Rights: Investors in OFR-recognised funds are unlikely to have access to the FOS for dispute resolution. Instead, they may need to rely on alternative dispute resolution mechanisms available in the fund's home jurisdiction.
The FCA has introduced disclosure requirements to ensure UK investors are aware of the protection they have, or do not have. This includes guidance on the information that needs to be disclosed in the prospectus and supplementary point-of-sale information.
If you’re unsure what this means for you, or you would like more information, please speak to a financial adviser. There’s likely to be a charge for this. If you don’t have a financial adviser, you can find one in your area by visiting moneyhelper.org.uk/choosing-a-financial-adviser, or find out more about advice services supported by Aegon by visiting aegon.co.uk/origen.
Origen Financial Services Ltd is wholly owned by Aegon UK plc but operate independently to us.