Regulation of Funds in the UK during the Coronavirus Pandemic

Given the ongoing СOVID-19 pandemic, there’s now a special page on FCA website containing regulatory information on some of the operational & financial problems UK funds are facing. If you are looking into the possibility of establishing a fund in Great Britain, you’ll probably find this article useful.

Concluding Contracts by Using E-Signatures in the UK

From now on, the FCA will be accepting applications with electronic signatures. However, the signatures will only be considered valid after the signatory has seen & agreed with the information that those forms contain.

Registering Funds in Great Britain: Meetings

Since social distancing is making one-on-one meetings impossible, the FCA has no objections to general meetings being conducted online. However, it should be kept in mind that funds’ documentation may require their founders to hold one-on-one meetings, thus rendering using electronic signatures inexpedient.

VaR

According to the FCA, companies should be continuing to comply with VaR limits in accordance with their policies. The regulator has emphasized the need for companies to come up with contingency plans & take appropriate steps when such events occur. The FCA calls on all firms that are trying to keep their funds within risk limits to notify their financial supervisors of any such situations.

Requirements for Filing Financial Statements When Establishing Funds in England

According to the FCA, funds & fund managers will now be granted an extension of 2 months for publishing their annual and semi-annual reports. They won’t have to submit their declaration of compliance with the requirements of employer liability, either. The said extensions aren’t automatically prolonged, which is why funds wishing to take advantage of them will have to notify the FCA in advance. Funds are also required to notify their depositaries (if necessary) & auditors. Fund managers must post an easily noticeable statement on their websites justifying their decision & indicating the estimated date of the introduction of the new rules.