On top of that, playing foreign players in games is not allowed (however you can buy/sell them if you do so wish). This rule applies from the Premier League to the Conference North/South as well as all domestic cups. However, this doesn't apply to continental competitions, and you can still play foreigners in the Champions League, Europa League, etc.
Premier League's reputation takes a hit early on in the save and loses one of it's champions league qualification spots, but gains it back a couple of season after losing it. The rest of the league's also go up a fair bit in reputation from the get-go.
If there are any problems with the database, tell me them in the comments and I will fix them right away and upload the new version.
How to apply this rule in English leagues on FM16
- Move the downloaded .fmf file to Documents\Sports Interactive\Football Manager 2016\editor data.
- Open FM 2016 and start a new save-game with this database selected.