Due to the operational challenges for funds’ reporting processes presented by the COVID-19 pandemic, the FCA has announced temporary relief for the publication of annual and half-yearly reports by Authorised Fund Managers (‘AFMs’) of UK UCITS schemes and non-UCITS retail schemes (‘NURS’).
AFMs will be granted an additional two months when publishing annual reports and an additional one month when publishing half-yearly reports. Firms are required to notify the FCA with their intention for additional time for the publication of either reports.
The FCA expects firms to contact them, when appropriate, to communicate issues of material concern under Principle 11. They also expect AFMs to work closely with their depositaries and ensure that decisions are made in line with good standards of governance and maintain oversight of the authorised fund sector through data reports and dialogue with investment managers.
The FCA still expects firms to publish reports on time when they can publish within the usual time limits without compromising the quality of the reporting, and in line with the current health guidelines.
Temporary relief
Under COLL 4.5.14R AFM’s are required to make available and publish the long reports prepared in line with COLL 4.5.7R within 4 months after the end of each annual accounting period and within 2 months after the end of each half-yearly accounting period.
Under the temporary relief announced last week, the FCA will not begin enforcement action for breaches of the above rules if AFMs publish:
annual reports and assessment of value reports within 6 months of their accounting year-end date or
financial statements within 3 months of the end of their half-yearly accounting period.
The FCA advise that AFMs wishing to use the additional time should promptly inform the fund’s depositary and auditors, and email them with details of the funds this will apply to including the intended new date of publication to the following email address: [email protected]
The FCA have announced that this policy is intended to be temporary while the UK faces the significant disruption of the Covid-19 pandemic and its aftermath.
