Investment management update - February 2024

• On 30 January 2024, the Economic Secretary announced that EEA UCITS will be deemed equivalent to UK UCITS in regulatory terms. This means that EEA UCITS will be eligible to apply for recognition for marketing in the UK when the Overseas Funds Regime begins. While the decision clarified that EEA UCITS will not be subject to the additional, local requirements that apply to FCA authorised funds, the Government will consult on extending the Sustainability Disclosure Requirements to overseas funds including EEA UCITS.

Economic Secretary's statement to Parliament

The Overseas Funds Regime: what does it mean for product value assessments?, Alexandra Green, Lora Froud, Gavin Haran (Macfarlanes)

• On 24 January 2024, the Bank of England published a response to its 2023 consultation on a Digital Pound, the UK’s version of a central bank digital currency. The Bank said that a decision has not been made on whether to launch a Digital Pound and that more scoping work needs to be done, but if the proposal does go ahead, the Digital Pound would be issued by the Bank to retail consumers. Separately, the Bank is working on a wholesale central bank digital currency via changes to the UK’s Real Time Gross Settlement System, via which banks transact with each other. The Bank’s wholesale workstream is taking account of similar developments across the world.

Response to the Bank of England and HM Treasury Consultation Paper − The digital pound: A new form of money for households and businesses? | Bank of England

The Real Time Gross Settlement service: an open platform to drive innovation - speech by Victoria Cleland | Bank of England

• On 22 January 2024, the Financial Reporting Council published an updated version of the Corporate Governance Code. The new Code will apply from 1 January 2025.

UK Corporate Governance Code 2024

• On 24 January 2024, the European Parliament voted to delay parts of the Corporate Sustainability Reporting Directive (CSRD) for two years. The adoption of the European Sustainability Reporting Standards in relation to sectoral-specific reporting, and in relation to large non-EU companies operating in the EU, will be delayed until the end of June 2026. Reporting would begin in 2028. The European Commission proposed the delay to reduce the reporting burden on companies.
• On 9 January 2024, France amended its Greenfin investment product label to permit investments in nuclear, consistent with the EU’s Taxonomy.

French Government Decree