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The notion of Functional Encryption (FE) has recently emerged as a strong primitive with several exciting applications. In this work, we initiate the study of the following question: Can existing public key encryption schemes be “upgraded” to Functional Encryption schemes without changing their public keys or the encryption algorithm? We call a public-key encryption scheme with this property to be FE-compatible. Indeed, assuming ideal obfuscation, it is easy to see that every CCA-secure public-key encryption scheme is FE-compatible. Despite the recent success in using indistinguishability obfuscation to replace ideal obfuscation for many applications, we show that this phenomenon most likely will not apply here. We show that assuming fully homomorphic encryption and the learning with errors (LWE) assumption, there exists a CCA-secure encryption scheme that is provably not FE-compatible. We also …