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AIFMD Case Study

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The manager is a non-EU fund manager with a UK subsidiary authorised with the FCA to establish and operate unregulated collective investment scheme and manage investments and is currently marketing proposed new funds throughout Europe via its MiFID pass-porting rights and national private placement regimes. In support of its European expansion plans it was vital that the manager could continue to market its proposed new funds throughout Europe during the AIFMD marketing transition period. The manager sought authorisation of its UK subsidiary as an Alternative Investment Fund Manager and was one of the first fund managers in the UK to submit its application to the FCA for a Variation of Permission to become authorised to act as an AIFM.

The 1st phase of the project was implemented under considerable time constraints and in an environment of uncertainty as the regulations and FCA authorisation remained unconfirmed until late May - even though the FCA had announced the incentive of an early submission resulting in a shortened 'fast track' 1 month authorisation approval (as opposed to the standard 3-6 months).

As a manager operating outside of the EU with existing operations the project team lead a current state assessment and gap analysis of existing global policies and procedures versus the AIFMD requirement to enable the completion of the application form and supporting Regulatory Business Plan. Once the above activities had been completed and over 15 existing policies had been updated for AIFMD the application was submitted. The 'fast track' authorisation timeframe was secured and consultations with the FCA are on-going.

Whilst the authorisation is in process the project team is focusing on refining business requirements, developing and implementing detailed AIFMD compliant operational procedures, implementing the required Corporate Governance Framework and appointing the Depository - all of which will be completed before authorisation is received.

The project's successful completion of the policy review and update and submission of the VOP has enabled the Manager to continue its marketing activities and effect a detailed examination of the AIFMD related business requirements.

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