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

CP12/32
Implementation of the Alternative Investment Fund Managers Directive
Annex X
6.21 The Directive requires the accounting information in the annual report to be audited by an
auditor subject to the Audit Directive. 51 However, our draft rule FUND 3.3.6R uses the
flexibility in Article 22 of the Directive to allow AIFMs marketing non-EEA AIFs in the UK
to have the AIF audited in the country where it is established, provided the process meets
international accounting standards.
6.22 Currently, managers of UK-authorised funds (i.e. NURS and QIS) are already required to
report most of the information required under the AIFMD, 52 but the remuneration
disclosure requirements will be new. We will consult on any necessary changes to align the
existing and new requirements for authorised funds in CP2. Managers of unauthorised
funds may have to report significantly more information to their professional clients under
the new regime than they do now, depending on what disclosures they currently make.
Remuneration disclosure
6.23 FUND 3.3.5R will implement the Directive requirement for AIFMs to report the following
staff remuneration information:
• the total amount of remuneration for the financial year paid by the AIFM to its staff,
split into fixed and variable remuneration; the number of beneficiaries; and, where
relevant, carried interest paid by the AIF; and
• the aggregate amount of remuneration broken down by senior management and
members of staff of the AIFM whose actions have a material impact on the risk profile
of the AIF.
6.24 Most respondents to DP12/1 were supportive of the disclosure requirements. 53 Concerns
were raised about the risk of compromising confidentiality, particularly with regard to
small AIFMs. ESMA has consulted on recommending in its Level 3 guidelines that the
remuneration disclosures should be made on a proportionate basis ‘without prejudice to
confidentiality’. 54
Reporting to the FCA
6.25 Article 24 AIFMD sets out the information that AIFMs are required to report to competent
authorities. These requirements will be transposed in new rules in FUND 3.4.
6.26 We expect the Level 2 Regulation to provide more detail on the content, format and
frequency of information to be provided, including reporting templates. FUND 3.4 will
incorporate some of these requirements where they give more substance to the Level 1
51 Directive 2006/43/EC.
52 COLL 4.5 in the Handbook.
53 Question 35 of DP12/1.
54 ESMA’s consultation paper ‘Guidelines on sound remuneration policies under AIFMD’, XI Disclosure para 196-197.
44 Financial Services Authority November 2012