CP12/32: Implementation of the Alternative ... - BVCA admin

November 2012
CP12/32
Implementation of the Alternative Investment Fund Managers Directive
given to the Commission by the European Securities and Markets Authority (ESMA) in
November 2011. 5 However, firms need to bear in mind that the draft rules and guidance in
this paper reflect the Level 1 Directive.
1.10 The measures in the Level 2 Regulation will be directly applicable in law, so we will not be
consulting on it once it is published. Neither will we incorporate all of its contents in our
Handbook. When we make the final rules, we will include references to relevant parts of
the Regulation, where we think it will be particularly important to help firms understand
the interaction between Level 1 and Level 2 measures.
1.11 ESMA is also engaged in various pieces of work to elaborate on the basic provisions of the
Directive. The two most important ones for firms are:
• draft regulatory technical standards (RTS) and related material on types of AIFMs –
this follows ESMA’s discussion paper of February 2012 and is expected to be published
in Q4 2012 6 ; and
• final Level 3 guidelines on remuneration policies and practices – this follows ESMA’s
consultation paper of June 2012 and is expected to be published in Q1 2013.
1.12 We will update you about the progress of this work in our second consultation paper (CP2).
Structure of this CP
1.13 Chapter 2 sets out our approach to consultation and transposition, in the context of both
the European process and the reform of UK financial regulation due in the first part of
2013, which is when we expect the FSA to be replaced by the FCA and the Prudential
Regulation Authority (PRA).
1.14 Chapter 3 describes our current understanding of the scope and application of the Directive
to firms, and the areas in which further clarification is needed. Chapter 4 explains the
requirement to be authorised under the Directive, and the effect of the changes that the
Treasury will propose making to certain regulated activities.
1.15 Chapter 5 describes our proposals for the prudential regime applicable to AIFMs, as well as
consequential changes affecting UCITS management companies.
1.16 Chapters 6, 7 and 8 describe how we intend to copy into our Handbook the other main
Level 1 requirements of the Directive affecting the organisation and management activities
of AIFMs, and the information they will need to disclose to us and to investors.
1.17 Chapter 9 describes our proposals for firms acting as depositaries.
5 ESMA’s technical advice to the European Commission on possible implementing measures of the Alternative Investment Fund
Managers Directive, 16 November 2011 ESMA/2011/379 www.esma.europa.eu/system/files/2011_379.pdf
6 Article 4(4) AIFMD requires ESMA to adopt regulatory technical standards.
Financial Services Authority 9