The FSA’s AIFMD consultation approach continues to be carried out in stages given European and other dependencies. This paper covers many of the issues that the FSA was unable to address in CP1. Firms affected by AIFMD should continue to prepare to be ‘AIFMD ready’, especially those firms that intend to carry on the regulated activity of managing AIFs for the first time after 22 July, 2013.
The regulator proposes to permit UK firms managing and/or marketing AIFs in the UK to make full use of the 12-month transitional period, whether these AIFMs become authorised or registered. This is in line with the Treasury’s position on the interpretation of the Directive’s transitional provisions in Article 61(1), as set out in its first consultation document, and applies irrespective of whether the AIF concerned is an EEA or non-EEA AIF. Firms carrying on management of AIFs from an establishment in the UK will have until 21 July 2014 to submit an application to become a UK-registered or UK-authorised AIFM, or to vary their Part 4A permission.
Supervisory assessment of delegation arrangements
The FSA intends to assess any delegation arrangements on a case-by case basis in a robust and flexible way, while taking account of the Level 1 and final Level 2 requirements. The Level 2 Regulation issued by the Commission on 19 December 2012 is nearing the end of the three-month period, during which the European Council and European Parliament could object to it. The FSA thinks any such objection is unlikely. During the transitional period from 22 July 2013 to 21 July 2014, the FSA does not propose to make supervisory assessments of a firm’s delegation arrangements, until the firm applies for authorisation or a variation of permission (VoP) to become an AIFM.
The deadline for comments is 10 May, 2013.
Press release
Full consultation paper
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