Watchdog publishes proposed AIFMD rules

Wednesday, 14 November 2012 14:48

The Financial Services Authority has published its first consultation paper on implementing the Alternative Investment Fund Managers Directive (AIFMD) to provide clarity to firms on those areas where the UK can apply its own requirements.

The AIFMD applies to investment companies and a wide range of firms that manage funds, including hedge funds, private equity funds and retail investment funds.

The proposed rules and guidance reflect the Level 1 Directive only, as the European Commission has not yet issued its Level 2 regulation.

The FSA has made proposals in the areas where there is sufficient certainty to consult:
- The prudential regime for all types of alternative investment fund manager;

- The regime for depositaries, including eligibility, capital requirements and the requirement to act independently;

- The Level 1 requirements on alternative investment fund managers, including organisational matters, duties in relation to management of funds and transparency obligations towards investors and the FCA.

Sheila Nicoll, head of conduct policy at the FSA, said: “We want to give firms as much time as we can to consider our proposals and prepare for implementation.

“Work is continuing at EU level and there are still uncertainties around aspects of AIFMD.

“However, there are a number of areas where we do have certainty and we have focused on these in our consultation. Where we can, we will take a flexible approach that seeks to avoid imposing requirements which go beyond those of the Directive.”

The consultation closes on 1 February 2013. The FSA will publish a second consultation in February 2013 on other aspects of AIFMD implementation.