Keep focused despite relaxation of AIFMD deadline

There is good news for those firms who have yet to prepare their AIFM variation of permissions. The Treasury is intending to amend the AIFM Regulations 2013 to provide that, if a transitional AIFM’s application for authorisation or registration is submitted without sufficient time for the FCA to determine the application by 22 July 2014 (the end of the transitional year), that AIFM will be able to continue managing AIFs until the FCA has determined the application.

The requirement to submit an application before 22 July 2014 will remain in place and all AIFMs will, in any event, be required to comply with all relevant AIFMD requirements from 22 July 2014, even if their application has not yet been determined.

The Treasury is working on the details, in particular the status of AIFMs whose applications are yet to be determined after 22 July 2014, however it is their intention to make an amending statutory instrument to this effect. 

What should you be doing now?
Whilst this is indeed good news, the Treasury has indicated that it still expects transitional AIFMs to make their applications for authorisation or registration in good time. Firms looking to vary their permissions or apply to become an AIFM will still need to submit you application well before the July date, and ensure that policies and procedures together with systems and controls reflect the changes.

Things for you to consider
Remember, for a full-scope AIFM, the variation of permission is more akin to a full application for authorisation with the FCA requiring a far deeper evaluation of your business, management and operations. You will therefore need to consider the following: 

  • Ensure you have at least the minimum capital adequacy requirement. For a full-scope firm the minimum will be €125,000.

  • Consider purchasing professional indemnity insurance.

  • Appoint and be able to provide details of your proposed depositary (required to be an authorised depositary).

  • Prepare a regulatory business plan which, in addition to outlining your proposed business and operating model and long term strategy, provides details of your systems and controls.

  • Prepare your compliance manual.

  • Be able to provide details of your financial resources and new financial resources requirements.

  • Consider how you are going to demonstrate the segregation of risk management and portfolio management.

  • Prepare new policies and procedures relating to leverage, liquidity, valuations, risk management, disclosure and prime brokerage.

We can help you
If you would like assistance in preparing your application or registration and supporting documentation then please contact our FS Compliance Team.


FS Compliance Team

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