Sun, Jun 25, 2017
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. FinTech - Rise of robots: Inside the world's fastest growing hedge funds[more]

    From Bloomberg.com: Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc. In some ways, their meteoric rise is due to the same technolog

  2. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  3. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is

  4. FinTech - AI hedge fund Numerai now live on Ethereum, Cryptocurrency hedge funds generate huge returns as bitcoin surges[more]

    AI hedge fund Numerai now live on Ethereum From Cryptoninjas.net: Back in February, Numerai announced numeraire (NMR), a cryptographic token to incentivize a new kind of hedge fund built by a network of data scientists. Earlier today, the Numeraire smart contract was officially deployed

  5. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to