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

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