LONDON, Dec 4 Reuters Britain proposed on Monday permanent, postBrexit rules for investment funds from the European Union that want to continue marketing themselves to retail investors in the UK, including spelling out limitations to compensation.

After Britain left the EU, it gave temporary permission for EUbased investment funds known as UCITS to continue taking UK customer cash until a permanent set of UK rules on market access for overseas funds is put in place in the first half of 2024.

The rules set out the information overseas funds will have to provide to the Financial Conduct Authority if the UK finance ministry decides that EU fund rules are equivalent or robust enough to grant market access.

The government has already indicated that UK investors in overseas funds won39;t be eligible for any compensation from Britain39;s Financial Services Compensation Scheme.

Overseas funds will need to make it clear when these customer protections are not available. This will help consumers to make informed decisions about which funds best meet their needs, the FCA said in its proposals for public consultation.

Britain is expected to allow EUbased funds, many of them listed in Dublin and Luxembourg and managed from London, to continue serving UK clients, given it continually stresses the City39;s openness as a global financial centre.

Most overseas funds on sale in Britain are from the EU, and EU funds make up a large portion of funds invested in by UK retail…