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

More documents

Recommendations

Info

CP12/32 Implementation of the Alternative Investment Fund Managers Directive 2 Implementation Annex X 2.1 This chapter covers our two-part approach to the AIFMD consultation process, continuing European work on the Directive and the impact of UK regulatory reform on implementation. It also covers strategic decisions relating to the retail authorised funds regime, the structure of the new investment funds sourcebook, and some transitional matters. Our approach to consultation 2.2 Our AIFMD consultation will be in two parts because of a number of significant European dependencies that affect the manner and timing of transposition of AIFMD in the UK. Where European dependencies (which we explain below) are clarified after the publication of this paper, we will cover any implementation matters arising from them in CP2. We will also set out in CP2 the proposed FCA rules to implement the Treasury’s proposals for any sub-threshold AIFM regimes. 9 2.3 We are consulting later than we had hoped to, considering the 22 July 2013 implementation deadline. We have had to balance the difficulties around the ongoing uncertainties at European level and the effect this is having on national implementation, against the need to help firms to continue to plan for AIFMD readiness. This was an important objective of DP12/1. 2.4 We think this approach is preferable to publishing a single larger consultation paper in Q1 2013, which would have given firms even less time to plan for AIFMD. 2.5 We are separately consulting on some minor changes to the Listing Rules in the light of the AIFMD, based on feedback received in relation to questions 55 to 57 in DP12/1. This is set out in CP12/25, Enhancing the effectiveness of the Listing Regime and feedback on CP12/2, which closes on 2 January 2013. 9 These are regimes permitted under Article 3 AIFMD (AUM below €100 million/€500 million). 14 Financial Services Authority November 2012
November 2012 Contextualising AIFMD CP12/32 Implementation of the Alternative Investment Fund Managers Directive 2.6 AIFMD is part of a significant reform programme put forward by the EU legislature to extend appropriate regulation and oversight in the financial services sector to all persons and activities that might embed significant risks. The aims of AIFMD include: • establishing a harmonised EU framework for monitoring and supervising the risks that AIFMs could pose to financial stability, and to investors, counterparties and other financial market participants; • enhancing supervisory practices and convergence among EU competent authorities to support timely and pre-emptive action to prevent market instability and the build-up of systemic risk in the European financial system; • improving investor protection by imposing new depositary standards and enhanced transparency through new investor disclosure rules and mandatory reporting to competent authorities; and • fostering efficiency and cross-border competition by deregulating national barriers and creating level playing fields through harmonised rules on an EU-wide passport for full-scope EEA AIFMs to market and manage AIFs from 23 July 2013. 10 The European process and the legal framework of AIFMD 2.7 We explain the key concepts and legal instruments of European law relevant to AIFMD in Annex 5. Readers may find it helpful to refer to this Annex to better understand the content which follows. 2.8 We posed a number of questions in DP12/1 with the expectation that some of the Directive’s implementing measures would be adopted using Level 2 Directives. 2.9 Since publication of DP12/1, the Commission has, however, decided that all the detailed Level 2 implementing measures should be adopted using EU regulations. 11 These will be directly applicable to firms and supervisory authorities in UK law, without requiring any transposition by the UK Parliament, so they are not subject to FSA consultation. This means that some of the possible discretions we described in DP12/1 will not be available. 2.10 For the Level 2 Regulation to come into force, it needs to be adopted and agreed by the Commission, European Parliament and European Council. At the time of publication, this process has not yet begun. 10 From 23 July 2013 there is no passport for non-EEA AIFMs. This will apply from 2015/16 if the Commission adopts a delegated act for such a passport, based on a positive report by ESMA – see article 62 AIFMD. However, from 23 July 2013 non-EEA AIFMs may continue to market AIFs in the national jurisdictions of Member States that have opted to permit national private placement. This is discussed further in Chapter 10. 11 These are essentially the Level 2 Regulation and further expected regulations on the ‘Member State of Reference’ for the non-EEA passport and on home/host State competent authority supervision). Financial Services Authority 15
Page 1: Consultation Paper CP12/32 Financia
Page 4 and 5: The Financial Services Authority in
Page 6 and 7: CP12/32 Implementation of the Alter
Page 66 and 67:
CP12/32 Implementation of the Alter
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 105 and 106:
Annex 2 List of consultation questi
Page 107:
Annex 2 November 2012 CP12/32 Imple
Page 111 and 112:
Page 113 and 114:
Page 115:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
ALTERNATIVE INVESTMENT FUND MANAGER
Page 126 and 127:
Annex A Making the Investment Funds
Page 128 and 129:
Page 5 of 91 Appendix 1 (2) a descr
Page 130 and 131:
3.2.5 R An AIFM must, for each AIF
Page 132 and 133:
Page 9 of 91 Appendix 1 (6) the agg
Page 134 and 135:
Page 11 of 91 Appendix 1 (4) the id
Page 136 and 137:
[Note: article 15(1) of AIFMD] this
Page 138 and 139:
(1) a full scope UK AIFM of: (a) a
Page 140 and 141:
Page 17 of 91 Appendix 1 (b) the re
Page 142 and 143:
experienced; Page 19 of 91 Appendix
Page 144 and 145:
Page 21 of 91 Appendix 1 by the fac
Page 146 and 147:
Page 23 of 91 Appendix 1 3.11.5 G T
Page 148 and 149:
(Own funds requirement). [Note: art
Page 150 and 151:
supplements the meaning of financia
Page 152 and 153:
instruments remain in its custody;
Page 154 and 155:
supplementing this section] 4. Comm
Page 156 and 157:
Annex B Amendments to the Glossary
Page 158 and 159:
collective portfolio management fir
Page 160 and 161:
Page 37 of 91 Appendix 1 non-listed
Page 162 and 163:
BIPRU 730k firm Page 39 of 91 Appen
Page 164 and 165:
… Page 41 of 91 Appendix 1 (e) (i
Page 166 and 167:
esources only at excessive cost. Pa
Page 168 and 169:
Single Market Directive … Page 45
Page 170 and 171:
Page 47 of 91 Appendix 1 [Note: art
Page 172 and 173:
Page 49 of 91 Appendix 1 7.1.7B In
Page 174 and 175:
Page 51 of 91 Appendix 1 [Note: art
Page 176 and 177:
[Note: paragraph 1(c) of Annex II o
Page 178 and 179:
[Note: paragraph 1(k) of Annex II o
Page 180 and 181:
[Note: paragraph 1(r) of Annex II o
Page 182 and 183:
Page 59 of 91 (2) the fixed overhea
Page 184 and 185:
Page 61 of 91 Appendix 1 amount of
Page 186 and 187:
Types of investment firm: BIPRU 50K
Page 188 and 189:
The following text is new and is no
Page 190 and 191:
Page 67 of 91 Appendix 1 (1) at the
Page 192 and 193:
Page 69 of 91 Appendix 1 so that th
Page 194 and 195:
TABLE 7.4 PART I A firm must calcul
Page 196 and 197:
Note consistently in respect of any
Page 198 and 199:
initial capital (see item 5) if the
Page 200 and 201:
Form of qualifying subordinated loa
Page 202 and 203:
Annex H Amendments to the Supervisi
Page 204 and 205:
Descriptio n of data item Annual re
Page 206 and 207:
… Data item SUP 16.12.12R, unless
Page 208 and 209:
indicated otherwise. Data item Firm
Page 210 and 211:
client assets … Page 87 of 91 App
Page 212 and 213:
… Data item SUP 16.12.23R, unless
Page 214 and 215:
FSA066 and FSA06 are added - see fo
Page 216 and 217:
Liquid assets test 32 Liquid assets
Page 218 and 219:
Professional negligence capital req
Page 220 and 221:
is not listed, select ‘Other’.
Page 222 and 223:
FSA067 Capital adequacy - supplemen
Page 224 and 225:
PII capital requirement 5A This is
Page 226 and 227:
External validations Validation Dat
Page 228 and 229:
Page 230:
show all

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

Create successful ePaper yourself

Delete template?

Save as template?