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

CP12/32
Implementation of the Alternative Investment Fund Managers Directive
Costs
Direct costs to the FSA and the FCA
Annex 1
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16. We estimate the one-off costs of implementing the AIFMD to be around £5m. These cover
staff costs and costs of anticipated systems developments following the high-level gap
analysis on the back of the initial interpretation of the Directive.
17. Additional supervisory staff may be needed on an ongoing basis due to the increase in the
number of regulated firms. However, most potential AIFMs are already authorised by the FSA,
so we do not expect a significant number of new managers, either start-ups or new entities
consolidating previous businesses. In particular, investment managers of NURS, QIS, UCIS
and externally managed investment trusts are already authorised and supervised by the FSA.
Compliance costs to AIFMs
18. Incremental compliance costs arising from the changes to parts of the Handbook are dealt
with on a topic-by-topic basis in paragraphs 20 to 65.
19. Table 1 gives an overview of the ranges of cost estimates provided by firms. 6 The fact that
cost ranges are very wide reflects that the impact will vary greatly across the industry. In
this and other cost summary tables, ‘£0’ covers cases where firms indicated that they will
not incur costs or where firms thought these costs are likely to be of minimal significance.
Also, not all costs were quantified in the CBA survey, and the effects of the following
requirements are discussed only qualitatively:
• securitisation requirements;
• liquid asset requirements; and
• requirements for depositaries.
6 These estimates cover both staff costs and non-staff costs, such as costs of updating electronic systems. To quantify staff costs we
assumed average annual salary of £50,000 plus 30% overheads.
A1:4 Financial Services Authority November 2012