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

CP12/32
Implementation of the Alternative Investment Fund Managers Directive
5. This CBA is structured as follows:
• our approach to the CBA;
• overview of the population of firms affected;
• costs;
• market impacts; and
• benefits.
Our approach to the CBA
Annex 1
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The relevant baseline
6. The CBA has to make an appropriate comparison between the overall position if the proposed
regulatory changes are applied and the overall position if they are not (i.e. the baseline).
7. In the case of AIFMD, we consider the appropriate baseline to be the status quo: the current
regulation that the different types of firms are subject to (or the absence of it) and current
business practice. Where there is discretion in AIFMD for the FCA to apply different rules
(e.g. reporting, capital, depositary requirements), we also consider the impact of the
additional requirements imposed by the FCA.
8. This CBA does not assess the impact on small firms falling below the thresholds in
Article 3(2) of the Directive, as these impacts will depend on the forthcoming Treasury
decisions following consultation. We also do not assess the impact of the transitional
provisions, though these are likely to reduce firms’ one-off compliance costs.
Data sources and level of analysis
9. The CBA is based on internal FSA analysis, the results of a firm survey sent to potential
AIFMs, discussions with stakeholders and input from our policy and supervisory experts.
We are grateful to all who contributed to the CBA. We also draw on publicly available
analysis, mainly the following reports:
• Charles River Associates (2009) ‘Impact of the proposed AIFMD Directive across
Europe’. 2 The CRA report was commissioned by the FSA.
• Deloitte (2012) ‘Responding to the new reality: Alternative Investment Fund Managers
Directive Survey’. 3
2 The CRA report can be accessed here: www.fsa.gov.uk/pubs/other/Impact_of_AIFM_Directive.pdf
3 The Deloitte report can be accessed here: www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/Industries/
Financial%20Services/uk-fs-aifmd-survey-responding-new-reality.pdf
A1:2 Financial Services Authority November 2012