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

CP12/32
Implementation of the Alternative Investment Fund Managers Directive
Annex X
1.18 Chapter 10 briefly explains some of the key issues relevant to the marketing of AIFs, which
we will explain in more detail in CP2.
1.19 Each chapter outlines the following, where appropriate:
• the Directive article(s) being transposed;
• the new rules firms must comply with under AIFMD and any related guidance;
• the policy intention and its expected effect on firms;
• matters where we propose, or are required, to make a discretionary decision (in each
case a CBA is provided in Annex 1);
• where it is clear, any existing requirements of our rules that will be disapplied for AIFMs;
• whether an issue is likely to be affected by the Level 2 Regulation or expected ESMA
guidelines; and
• where an issue is not covered in this paper but is planned to be included in CP2.
Preparing for AIFMD
1.20 We currently expect that AIFMD will apply to a significant number of UK-based firms
managing the assets of retail and professional investors. AIFMD also applies to the small
number of firms authorised as depositaries. Non-EEA AIFMs will be affected if they are
marketing AIFs under Articles 36 and 42 of the Directive (see Chapter 10).
1.21 Under the Financial Services Bill 2012 (the Bill), an AIFM will be subject to both conduct
and prudential regulation by the FCA. This will also generally be the case for depositaries;
however, systemically important depositaries such as major banks will be prudentially
regulated by the PRA.
1.22 In this paper, we do not take into account proposals that the Treasury intends to make
concerning options to apply differentiated regimes to certain smaller firms under Article 3
of the Directive. Depending on the outcome of the Treasury’s consultation, we expect to
address this subject in CP2.
1.23 Firms that will be, or expect to be, subject to the full Directive requirements will have many
issues to consider, not of all which we can address at this time because of the various
external dependencies that we have explained. Despite this uncertainty, we aim to give
helpful indicative messages in this paper to firms that may become AIFMs or provide
services to AIFMs, while awaiting finalisation of other legislative elements. We think that
publishing this paper now will allow affected firms to begin making choices about their
structuring and to continue planning for compliance with the Level 1 requirements. It will
10 Financial Services Authority November 2012