Which requirement does NOT apply to the admission criteria for a specialist fund segment?

The admission criteria for a specialist fund segment have specific requirements aimed at ensuring that funds meet certain regulatory standards and are transparent to investors. The need for a prospectus approved by a competent authority in the European Economic Area (EEA) highlights the importance of regulatory oversight within the relevant jurisdiction. A UKLA approved sponsor is crucial as it provides an additional layer of assurance regarding the fund's compliance with necessary regulations and the quality of information provided to investors.

Transparency compliance with EU directives signifies that the funds must adhere to established standards of transparency, thereby protecting investors and maintaining market integrity. This aligns with the goals of ensuring that funds are managed and reported in a manner consistent with EU regulatory frameworks.

In contrast, direct approval by the SEC (U.S. Securities and Exchange Commission) is not a requirement for funds operating within the context of the EEA. The SEC's jurisdiction and regulations apply to U.S.-based entities or funds that are offered to U.S. investors, but they do not impact the admission criteria for specialist fund segments within the European regulatory framework. This makes the choice regarding SEC approval the only one that does not align with the specified requirements for admission to a specialist fund segment.