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

(1) a full scope UK AIFM of:
(a) a UK AIF;
Page 15 of 91
Appendix 1
(b) an EEA AIF managed or marketed from an establishment in
the United Kingdom; and
(c) a non-EEA AIF; and
(2) an incoming EEA AIFM branch which manages or markets a UK
AIF.
Selection of a prime brokerage firm
3.8.2 R An AIFM must exercise due skill, care and diligence in the selection and
appointment of a prime brokerage firm.
[Note: article 14(3) second paragraph of the AIFMD]
Prime brokerage firm contract
3.8.3 R Where the AIFM, on behalf of an AIF, uses the services of a prime
brokerage firm, the terms must be set out in a written contract. In particular,
any possibility of transfer and reuse of AIF assets must be provided for in
that contract and must comply with the AIF’s instrument constituting the
fund. The contract must provide for the depositary to be informed of the
contract.
3.9 Valuation
[Note: article 14(3) first paragraph of the AIFMD]
Application
3.9.1 R This section applies to a full scope UK AIFM of:
(1) a UK AIF;
(2) an EEA AIF; and
(3) a non-EEA AIF.
Responsibility of the AIFM
3.9.2 R An AIFM is responsible for the proper valuation of AIF assets, the
calculation of the net asset value and the publication of that net asset value.
[Note: article 19(10) first sentence first paragraph of AIFMD]
Standard of care of the valuation