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

CP12/32
Implementation of the Alternative Investment Fund Managers Directive
Annex X
2.11 In addition to the delegated acts that form the Level 2 Regulation, the Level 1 text
contains numerous provisions requiring or permitting other types of subordinate
measures, binding technical standards and Level 3 guidelines. These measures are either
discretionary or mandatory. 12
2.12 ESMA has prepared draft regulatory technical standards on types of AIFM under article
4(4) AIFMD and will formally consult on these standards and any related Level 3
guidelines. These are expected to be in place before 22 July 2013.
2.13 We are continuing to work within ESMA to bring its AIFMD work due for July 2013 to
a conclusion.
2.14 Since it is expected that Iceland, Liechtenstein and Norway will also implement AIFMD, we
have referred throughout this paper to ‘EEA’ AIFMs and AIFs rather than to ‘EU’ AIFMs.
Alignment with regulatory reform
Regulatory reform
2.15 We are preparing for AIFMD at the same time as undergoing significant strategic and
operational change under the government’s regulatory reform programme. The principal
outcome is that the FSA is expected to be split into the FCA and the PRA in 2013. The
Financial Services Bill, which gives effect to these changes, is likely to become law in Q1 2013,
with the two new regulators expected to assume their responsibilities on 1 April 2013.
2.16 The FCA will be responsible for the conduct and wholesale supervision of financial services
firms, as well as the prudential supervision of firms not supervised by the PRA.
2.17 The FCA’s stated strategic objective is to ensure that the relevant markets function well. To
support this, it has three operational objectives. These are to secure an appropriate degree
of protection for consumers, to protect and enhance the integrity of the UK financial
system, and to promote effective competition in the interests of consumers.
Approach to AIFM supervision: judgment-based supervision
2.18 In line with the approach set out in Journey to the FCA 13 , the FCA will form its judgments
based on a comprehensive, forward-looking view of a firm, to assess all potential risks that
could affect the AIFM sector and other sectors, the markets and investors. Firms’ own risk
management is expected to be forward-looking.
12 For example, the provisions for the non-EU AIFM passport, to be operative from 2015/16, require a number of binding
technical standards and Level 3 guidelines to be in place. We expect this work to be undertaken by ESMA after the 22 July 2013
implementation date, ahead of 2015/16. See articles 35 and 37-41 AIFMD.
13 http://content.yudu.com/A1z7zd/journey-to-the-fca/resources/index.htm?referrerUrl=http%3A%2F%2Fwww.fsa.gov.
uk%2Fabout%2Fwhat%2Freg_reform%2Ffca
16 Financial Services Authority November 2012