Sun, Jan 25, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Fund managers and insurance mediation: the hidden deadline

Tuesday, July 15, 2014
Opalesque Industry Update - In addition to the fast approaching deadline for AIFMD, all fund managers must be well aware that next Monday, 21 July 2014, is the last possible date for application to the FCA for authorisation to manage an AIF under the transitional provisions. Less obvious is the fact that it is also the key date to notify the FCA if the AIFM needs to carry out insurance mediation in connection with the fund. Many real estate managers, and some others, need to carry on insurance mediation when arranging insurance for the assets of the fund.

Generally fund managers authorised as AIFMs or UCITS managers do not need separate permissions to carry out additional regulated activities in connection with or for the purposes of the management of the relevant AIF or UCITS. As far as insurance mediation is concerned a notable exception to this general rule was introduced recently by the Alternative Investment Fund Managers Order 2014 (amended by the Alternative Investment Fund Managers (Amendment) Order 2014). With effect from 22 July 2014 fund managers wishing to carry out insurance mediation as part of their fund management activities will need to have that separately specified in their scope of permission.

In recognition of the late change a short form notification procedure has been introduced – but only for those who give notice to the FCA before 22 July 2014. After that date a full scale variation of permission application would be required.

This notification must specify the relevant regulated insurance mediation activities for which permission is required and must be received by the FCA before 22 July 2014.

Authorised AIFMs and UCITS managers who give this notice will automatically be treated as having been granted permission to carry out the relevant insurance mediation on the date their permission (to manage AIFs or UCITS) takes effect, or 22 July 2014, whichever is later. This is assuming that the FCA has not imposed a requirement on the firm to refrain from carrying out insurance mediation.

For firms whose applications for authorisation or variation of permission applications have not yet been determined, the notification will effectively add insurance mediation to the activities for which application is being made.

Subsequent to 22 July 2014, managers will need to apply to the FCA to include insurance mediation in their permissions in the normal way as with any other regulated activity.

King & Wood Mallesons

Press Release

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Commodities - Druckenmiller alums at PointState make $1 billion on oil, Andurand Capital sees oil sliding to $40[more]

    Druckenmiller alums at PointState make $1 billion on oil From Bloomberg.com: Hedge fund manager Zach Schreiber stood on stage at Avery Fisher Hall in New York eight months ago and made a bold prediction. “We believe crude oil is going lower -- much lower,” Schreiber, 42, told the audienc

  2. Investing - David Einhorn discloses a new position in Time Warner, Canyon trimming bets on mortgage bonds after making $7bn[more]

    David Einhorn discloses a new position in Time Warner From FTLeavenworthlamp.com: …Einhorn also disclosed a new position in Time Warner. "Since 2009, TWX has refocused its business into a collection of high quality assets including basic cable networks (Turner and CNN), a movie studio (

  3. Top performing private equity firms you should invest in[more]

    Komfie Manalo, Opalesque Asia: Professor Oliver Gottschalg of Paris-based HEC Business School, also known as Ecole des Hautes Etudes Commerciales de Paris has released his annual ranking of the top performing private equity firms. The 2014 HEC-DowJones Private Equity Performance Ranking

  4. Comment - Why invest in hedge funds if they don't outperform the market?[more]

    From Forbes.com: Hedge funds have always been a bit exotic and an enigma to some, but bottom line they are supposed to produce good returns using a range of strategies including global macro, event driven and relative value (arbitrage). And, sophisticated or high-net-worth individuals (HNWIs) could

  5. Owen Li 'truly sorry' for blowing up $100m of hedge fund’s assets[more]

    From CNBC.com: A hedge fund manager told clients he is "truly sorry" for losing virtually all their money. Owen Li, the founder of Canarsie Capital in New York, said Tuesday he had lost all but $200,000 of the firm's capital—down from the roughly $100 million it ran as of late March. "I take r