The FSA today published Discussion Paper 12/1 (the DP) on the “Implementation of the AIFMD”. The DP seeks the views of alternative fund managers as the FSA starts working on transposing the AIFMD into national law by the deadline of 22 July 2013. The DP can be read here.
From the FSA press release:
“The Discussion Paper (DP) will be most relevant to those entities that will be defined as managers of Alternative Investment Funds (AIFMs and AIFs) under the Alternative Investment Fund Managers Directive (the Directive).
The Directive will directly regulate:
• UK-based fund managers that deem at least part of their regular business as managing AIFs (including UCITS management companies if they manage AIFs as well);
• some discretionary investment managers;
• operators of unregulated collective investment schemes;
• investment companies that do not employ an external fund manager; and
• depositaries and custodians holding the assets of AIFs.
The Directive will also affect those firms who provide AIFMs with services such as:
• prime brokerage facilities;
• external valuation;
• client administration; and
• marketing and distribution (including AIFMs established elsewhere in the EU who market their AIFs in the UK).
Implementation will significantly alter the regulatory framework under which (potential) Alternative Investment Fund Managers (AIFMs) operate, manage and/or market AIFs in the UK and across the EU. It will change how AIFMs operate their businesses and how they interact with third party service providers, including under delegation (outsourcing) arrangements.
It also means a new set of requirements for listed internally managed AIFs currently subject to the listing rules of the UK Listing Authority. Implementing the Directive will affect firms’ relations with investors, shareholders of corporate AIFs and national and EU regulatory authorities.”
The DP process will run for a two-month period from 23 January to 23 March 2012.
UPDATE 25 January 2012: Some comment on what the DP says about remuneration from FT Alphaville.
UPDATE 27 March 2012: The City of London Law Society’s Regulatory Law Committee’s response to this consultation is here.
Friendly Corporate PSL
To subscribe for our free weekly update e-mail, click here.