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

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CP12/32 Implementation of the Alternative Investment Fund Managers Directive Annex X 2.33 We considered other possible approaches carefully before we published DP12/1, but concluded that they would not be best for the majority of future AIFMs, and this remains our view. The single sourcebook that we are proposing, containing a set of rules common to all AIFMs, and with additional rules applicable to categories of AIFs (such as non-UCITS authorised funds), is likely to be more convenient for most users. We think it will be possible to include UCITS and their management companies in this structure without unduly complicating readers’ navigation of the rules and guidance. 2.34 The draft instrument in Appendix 1 of this paper consists of amendments to existing sourcebooks and a new module, to be known as the Investment Funds sourcebook (FUND). FUND will in due course entirely replace COLL, although there will be transitional provisions to ease the process, particularly for rules applying to UCITS schemes. We will address this in more detail in CP2. 2.35 We also proposed in DP12/1 that we would reorganise Handbook material relating to the prudential requirements for UCITS management companies. We intend to proceed with these changes. Structure of the Investment Funds sourcebook 2.36 FUND will be a single sourcebook combining requirements for AIFs, UCITS and the companies that manage them. It will do this in a way that should make it easy for readers to distinguish which requirements apply to which type of fund or fund manager. The new sourcebook will include rules and guidance on all subjects that are currently addressed by COLL, but it will have a much wider scope, to reflect the range of fund managers, depositaries and other firms that are affected by AIFMD. 2.37 The proposed structure of FUND organises the subject-matter according to the range of funds and firms it applies to, as follows: Chapter Subject matter Scope 1 Introduction all firms managing AIFs and UCITS, all AIFs and UCITS 2 Authorisation all firms managing AIFs and UCITS, all authorised AIFs and UCITS 3 Requirements for managers of AIFs all AIFMs and AIFs 4 Common requirements for all retail funds all AIFMs managing NURS and QIS, all UCITS management companies and UCITS schemes 5 Additional requirements for retail alternative investment funds all AIFMs managing NURS 6 Additional requirements for qualified investor alternative investment funds all AIFMs managing QIS 7 Additional requirement for UCITS funds all UCITS management companies and UCITS schemes 8 Additional requirements for UCITS and AIF master-feeder arrangements all AIFMs and UCITS management companies that manage UCITS/NURS/QIS feeder funds or master funds 20 Financial Services Authority November 2012
November 2012 CP12/32 Implementation of the Alternative Investment Fund Managers Directive 9 Suspension of dealings and termination of all AIFMs managing NURS and QIS, all UCITS authorised funds management companies and UCITS schemes 10 Operating on a cross-border basis all UK AIFMs and UCITS management companies passporting into another EEA State, all EEA firms passporting into the UK under an AIFMD or UCITS Directive right 11 Recognised funds all s.264 (UCITS) recognised schemes and all s.270 and s.272 recognised schemes 2.38 Consequently, AIFMs not managing authorised funds and that deal exclusively with professional investors, will need to consider only the first three chapters of FUND (and Chapter 10 where they are exercising passporting rights). 2.39 This CP contains proposed rules and guidance for chapter 3 of FUND. We shall consult on the remaining material in CP2. Transitionals 2.40 The AIFMD allows firms that are already managing or marketing AIFs, before 22 July 2013, a transitional period of 12 months to comply with the relevant laws and regulations and to apply for authorisation. The Treasury regulations propose that a firm carrying on the activity of managing one or more AIFs as at 22 July 2013 will be permitted to continue its collective portfolio management activities, subject to the Handbook rules applying immediately before that date. A firm which currently carries on business as an AIFM without needing a Part IV permission – for example, an internally managed investment company – will be able to benefit from this transitional period. All these firms must, however, be AIFMD-compliant and have submitted an application for authorisation by the end of that 12-month period. 2.41 The Directive requires national competent authorities normally to decide applications for authorisation within three months of their submission. We expect firms to submit an application for an AIFM authorisation or a variation of permission (VoP) by 22 July 2014. 2.42 A UK firm that wishes to begin managing an AIF for the first time after 22 July 2013 will not benefit from any transitional provision. It will first have to apply to the FCA for authorisation and be fully compliant with the Directive requirements before it can begin to manage an AIF. The same is true where the firm wishes to begin marketing AIFs in the UK or any other EEA Member State. 2.43 There are no general transitional provisions relating to depositaries, in terms of their readiness to act for AIFs from July 2013. A firm will have to hold the relevant Part IV permission to be appointed as depositary of an AIF in accordance with the Directive, so these firms should consider carefully what they will need to do to be in a position to offer that service from the date of implementation, or shortly afterwards. The transitional Financial Services Authority 21
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Annex 2 List of consultation questi
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Annex 2 November 2012 CP12/32 Imple
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ALTERNATIVE INVESTMENT FUND MANAGER
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Annex A Making the Investment Funds
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3.2.5 R An AIFM must, for each AIF
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Page 11 of 91 Appendix 1 (4) the id
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[Note: article 15(1) of AIFMD] this
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(1) a full scope UK AIFM of: (a) a
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Page 17 of 91 Appendix 1 (b) the re
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experienced; Page 19 of 91 Appendix
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Page 21 of 91 Appendix 1 by the fac
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Page 23 of 91 Appendix 1 3.11.5 G T
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(Own funds requirement). [Note: art
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supplements the meaning of financia
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instruments remain in its custody;
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supplementing this section] 4. Comm
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Annex B Amendments to the Glossary
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collective portfolio management fir
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Page 37 of 91 Appendix 1 non-listed
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BIPRU 730k firm Page 39 of 91 Appen
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… Page 41 of 91 Appendix 1 (e) (i
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esources only at excessive cost. Pa
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Single Market Directive … Page 45
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[Note: paragraph 1(c) of Annex II o
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[Note: paragraph 1(k) of Annex II o
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[Note: paragraph 1(r) of Annex II o
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Page 61 of 91 Appendix 1 amount of
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Types of investment firm: BIPRU 50K
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The following text is new and is no
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TABLE 7.4 PART I A firm must calcul
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Note consistently in respect of any
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initial capital (see item 5) if the
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Form of qualifying subordinated loa
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Annex H Amendments to the Supervisi
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Descriptio n of data item Annual re
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… Data item SUP 16.12.12R, unless
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indicated otherwise. Data item Firm
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client assets … Page 87 of 91 App
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… Data item SUP 16.12.23R, unless
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FSA066 and FSA06 are added - see fo
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Liquid assets test 32 Liquid assets
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Professional negligence capital req
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is not listed, select ‘Other’.
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FSA067 Capital adequacy - supplemen
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PII capital requirement 5A This is
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External validations Validation Dat
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