Fri, May 27, 2016
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. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  5. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year