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

CP12/32
Implementation of the Alternative Investment Fund Managers Directive
Financial stability
Annex 4X
5. Our proposed rules for AIFMs, the funds that they manage, and depositaries are likely to
improve conduct and prudential standards, reduce the risk of investor losses associated
with default, limit opportunities for regulatory arbitrage, inform regulators concerning the
positions and exposures taken by AIFs, and thus contribute to greater financial stability.
Compatibility with the proposed FCA statutory and
regulatory objectives
6. The policy proposals and draft rules in this consultation also contribute to the proposed
statutory and regulatory objectives of the FCA.
Ensuring that the relevant markets function well
7. Our proposals will generally improve the functioning of the market for asset management
and depositary services. For instance, the new investor disclosure rules are likely to provide
better and more consistent information to investors choosing AIFs, and AIFs passporting
across Europe will compete for investors while being regulated.
Consumer protection objective
8. Please refer to paragraph 3 regarding consumer protection under the FSA objectives.
Integrity objective
9. We would expect the draft rules to strengthen professional standards and regulatory
accountability for AIFMs, depositaries and others, which would increase integrity. As
explained above the rules should also contribute to the stability of the financial system.
Competition objective and duty
10. We would expect that the draft rules would improve competition for certain sectors of asset
management, which have been hampered by disparate operating, prudential and marketing
rules both within Member States and across the EU. On the other hand, barriers to entry
for providing AIFM or depositary services are likely to increase.
A4:2 Financial Services Authority November 2012