Additional notes (May, 2021):

It was observed that the proposed resolution above does not address the example in the issue, since fp neither has a trailing-return-type nor declares a function. Presumably another case in which a function declarator with a placeholder return type should be permitted is in the declaration of a variable in which the type is deduced from its initializer.

It was also noted in passing that the deduction in the example is only partial: the parameter-type-list is specified by the declarator and only the return type is deduced from the initializer. Although this example is supported by current implementations, there is implementation divergence in the support of another case in which only part of the variable's type is deduced:

    auto (&ar)[2] = L"a";  // Array bound declared, element type deduced

This issue is related to issue 1892, which prohibited cases like

    std::vector<auto(*)()> v;

The ultimate outcome of the two issues should be:

    int f();
    auto (*fp1)() = f;       // OK
    auto (*fp2)()->int = f;  // OK
    auto (*fp3)()->auto = f; // OK

    template<typename T> struct C { };
    C<auto(*)()> c1;         // Not OK
    C<auto(*)()->int> c2;    // OK
    C<auto(*)()->auto> c3;   // Not OK

Proposed resolution (April, 2021):

Change 9.2.9.6.1 [dcl.spec.auto.general] paragraph 3 as follows:

The placeholder type can appear with a function declarator in the decl-specifier-seq, type-specifier-seq, conversion-function-id, or trailing-return-type, in any context where such a declarator is valid if the function declarator includes a trailing-return-type T (9.3.4.6 [dcl.fct]) or declares a function. If the function declarator includes a trailing-return-type (9.3.4.6 [dcl.fct]), that trailing-return-type specifies In the former case, T is the declared return type of the function. Otherwise, the function declarator shall declare a function. If the declared return type of the a function contains a placeholder type, the return type of the function is deduced from non-discarded return statements, if any, in the body of the function (8.5.2 [stmt.if]).

According to 9.2.9.6.1 [dcl.spec.auto.general] paragraph 3,

The placeholder type can appear with a function declarator in the decl-specifier-seq, type-specifier-seq, conversion-function-id, or trailing-return-type, in any context where such a declarator is valid. If the function declarator includes a trailing-return-type (9.3.4.6 [dcl.fct]), that trailing-return-type specifies the declared return type of the function. Otherwise, the function declarator shall declare a function.

This wording disallows a declaration like

   int f();
   auto (*fp)()=f;

The requirement to declare a function was introduced by the resolution of issue 1892.