Non-EEA investment managers
Exemption for US investment managers
DTR 5.1.5 allows certain voting rights (such as the holdings of EEA qualifying investment managers, asset managers and shares belonging to open-ended investment companies) to be disregarded for the purposes of notification below the 5% and 10% thresholds (DTR 5.1.5R). The rules [DTR 5.1.5(1)(d) and DTR 5.1.5(2)(e)] also give us the power to determine that non-EEA investment entities and managers should be subject to the same notification obligations as EEA firms.
We consider that equal treatment of non-EEA investment managers and entities should be conditional on the entities and managers concerned being subject to appropriate regulation in the country in question.
We have been approached by representatives of US investment managers requesting equal treatment. Based on our examination of the general regulation and major shareholding disclosure obligations of investment managers in the US, we consider 'investment advisors' registered under the 'Investment Advisors Act 1940' to be subject to appropriate regulation. On the basis that there are no other impediments to prescribing US investment advisors (e.g. lack of reciprocity in the treatment of EEA investment managers), they will for the purposes of DTR5 be treated in the same way as EEA investment managers.
Other non-EEA investment managers
If investment managers in any other non-EEA jurisdiction would like to apply for similar treatment to EEA investment managers they should contact us on the following email address: TD_queries@fsa.gov.uk