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

Annex 4
November 2012
CP12/32
Implementation of the Alternative Investment Fund Managers Directive
Compatibility Statement
Introduction
1. In this section we describe how the proposed rules in this paper are compatible with our
general duties under Section 2 of FSMA and our FSA regulatory objectives set out in
Sections 3 to 6 of FSMA as well as the proposed FCA strategic and operational objectives
in the Bill. This section also outlines how our proposals are consistent with the principles
of good regulation (also in Section 2 of FSMA) which also must be considered. As
explained in the main text of this paper we have limited discretion on the implementation
of AIFMD and this is reflected in the draft rules we are proposing for consultation.
Market confidence
2. Our proposals will generally improve the quality of asset management standards. In turn,
we would expect this to lead to a higher level of investor confidence.
Consumer protection
3. Transposing AIFMD into UK law provides an enhanced conduct and prudential regime
with a key aim of providing greater investor protection.
Reducing financial crime
4. We would expect the draft rules to strengthen professional standards and regulatory
accountability for AIFMs, depositaries and others, potentially reducing the opportunities
for financial crime. However, AIFMD is not directly aimed at reducing the incidence of
financial crime.
Financial Services Authority A4:1