There are over 9,000 EU domiciled funds (i.e. fund is situated/registered in EU) that are authorised for sale/distribution in the UK to UK retail investors (Source CityWire).
The FCA has already authorised under the Temporary Permissions Regime (TPR) for EU funds to continue to be accessible to UK investors even with a ‘No Deal’ Brexit until those funds seek and are given UK FCA approval. This means you may have funds invested in EU domiciled funds that will no longer be protected by the UK Financial Services Compensation Scheme.
In the event of a fund or company collapse, you would need to seek compensation from the overseas compensation scheme where the fund is based and not the UK FSCS.
This does not mean “European Equity Fund” or “European Bond Fund” this could be a fund simply called “UK Equity” or “Global Equity” or “Global Technology”. It is not the title of the fund or where it invests but where the fund is set up and registered and we know, there are 9,000 funds.
If you invest using a platform for self investment or much wider funds ranges, you need to check where all your funds are ‘domiciled’.
- Check with your investment or pension platform
- Check the fund factsheet
- Check with your financial adviser