Fri, Jul 1, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

UK compliance manager advises all alternative investment managers to apply for AIFMD authorisation or registration asap

Monday, January 06, 2014
Opalesque Industry Update - Anthony Rawlins, compliance manager at Moore Stephens, advises on the top tips to consider in wake of the Alternative Investment Fund Managers Directive (AIFMD) transitional arrangements update.

“While the deadline extension is good news for those firms that have yet to prepare their AIFM variation of permissions, this development should not be viewed as a disincentive to act now. We are advising all of our clients that fall within the scope of an AIFM to make their applications for authorisation or registration as soon as possible in the New Year.

“The Treasury is currently ironing out some of the more intricate details, but it is clear in any event that all AIFMs will be required to comply with all relevant AIFMD requirements from 22 July 2014, even if their application has not yet been determined. Firms looking to vary their permissions or apply to become an AIFM are being required by the FCA to undertake a far deeper evaluation of their business, management and operations and should heed the Treasury’s advice to submit their application well in advance of the July deadline to ensure that their policies and procedures together with their systems and controls reflect this change.

“For a full-scope AIFM, the variation of permission is more akin to a full application for authorisation with the FCA requiring a far deeper evaluation of your business, management and operations. So firms need to consider the following aspects:

- Ensure you have at least the minimum capital adequacy requirement. For a full-scope firm the minimum will be €125,000;
- Consider purchasing Professional Indemnity Insurance;
- Appoint and be able to provide details of your proposed depositary (required to be an authorised depositary);
- Prepare a regulatory business plan which, in addition to outlining your proposed business and operating model and long term strategy will also need to incorporate details of your systems and controls;
- Prepare your compliance manual;
- Be able to provide details of your financial resources and your new financial resources requirements;
- Consider how you are going to demonstrate the segregation of risk management and portfolio management;
- Prepare new policies and procedures relating to leverage, liquidity, valuations, risk management, disclosure and prime brokerage.”

Background information

The Treasury is intending to amend the Alternative Investment Fund Managers Regulations 2013 to provide that, if a transitional AIFM’s application for authorisation or registration is submitted without sufficient time for the Financial Conduct Authority to determine the application by 22 July 2014 (the end of the transitional year), that AIFM will be able to continue managing AIFs until the FCA has determined the application. The requirement to submit an application before 22 July 2014 will remain in place and all AIFMs will, in any event, be required to comply with all relevant AIFMD requirements from 22 July 2014, even if their application has not yet been determined.

The Treasury are working on the details, in particular the status of AIFMs whose applications are yet to be determined after 22 July 2014, however it is their intention to make an amending statutory instrument to this effect in the New Year.

A link to the Alternative Investment Fund Managers Directive transitional arrangements update can be found here:www.gov.uk.

Press release

Bg

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. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  2. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  3. Chesapeake Partners to liquidate hedge fund amidst 'hostile environment'[more]

    Komfie Manalo, Opalesque Asia: Chesapeake Partners Management, the hedge fund run by woman fund manager Traci Lerner said it would return investors’ money after 25 years because the market environment has become "hostile" to manage other people’s money, reported

  4. Europe - George Soros says Brexit has ‘unleashed’ a financial markets crisis, Brexit—what we know, Will the UK’s departure be a ‘soft-Brexit’ or a ‘hard-Brexit’?, Brexit: Six-point action plan for asset managers[more]

    George Soros says Brexit has ‘unleashed’ a financial markets crisis From Bloomberg.com: Britain’s decision to leave the European Union has “unleashed” a crisis in financial markets similar to the global financial crisis of 2007 and 2008, George Soros told the European Parliament in Bruss

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.