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

CP12/32
Implementation of the Alternative Investment Fund Managers Directive
Other permitted activities of AIFMs and UCITS management companies
4.16 Both AIFMD and the UCITS Directive restrict the range of activities that a collective
portfolio manager may carry out. The same firm can manage both UCITS and AIFs if it
holds the necessary authorisations, so it will be possible for the Part IV permissions of
managing an AIF and managing a UCITS to be held together.
Annex X
4.17 An AIFM and a UCITS management company may also be permitted to carry out certain
other activities that would otherwise be regulated under MiFID. So those firms may hold
the Part IV permissions necessary to enable them to perform some or all of the services
allowed by Article 6(4) of AIFMD and Article 6(3) of the UCITS Directive. 26 We expect to
apply limitations or requirements to the permissions where necessary to make it clear that
the firm cannot be a manager of AIFs or UCITS and simultaneously perform the full range
of activities possible under a MiFID authorisation.
4.18 There is currently some uncertainty about whether an AIFM that carries out ‘MiFID
services’ under Article 6(4) has the right under AIFMD to passport those services to other
Member States. Our provisional view is that they do have such a right, but some other
Member States think they would need to be authorised under either MiFID or the UCITS
Directive to do so (and any MiFID licence would have to be limited to those specified
activities). However, in practice, a UK firm will hold the same Part IV permissions,
whichever Directive they are considered to derive from 27 , so UK AIFMs are likely to be
able to provide those services elsewhere in the EEA.
Authorisation of depositaries
4.19 The Treasury consultation document explains that the existing regulated activities of acting
as trustee or depositary of an authorised fund will be replaced by the two new depositary
activities mentioned in paragraph 4.4. Chapter 9 of this paper explains which UK firms can
be appointed as depositary of an AIF and what requirements they have to meet.
4.20 The Treasury is proposing to provide in its regulations that firms with Part IV permissions
to act as trustee of an AUT or depositary of an OEIC will, where the AUT or OEIC is a
UCITS, automatically be transferred to the activity of acting as a depositary of UCITS.
4.21 We are currently considering whether we can apply a ‘grandfathering’ process to VoPs for
the activity of acting as a depositary of AIFs, and will tell firms in due course what we
intend to do.
26 Rules in FUND 2 giving effect to these options will be consulted on in CP2.
27 Except that an AIFM is permitted to carry out the activity of receiving and transmitting orders under AIFMD but not under the
UCITS Directive.
30 Financial Services Authority November 2012