FCA requests AIFMs to submit applications by 22 April
Alternative Investment Fund Managers ("AIFMs") relying
on the one year transitional provisions under the Alternative
Investment Fund Managers Directive ("AIFMD") have been
encouraged by the Financial Conduct Authority ("FCA") to
submit their applications to manage Alternative Investment Funds
("AIF") before the 22 April 2014.
As a result, the FCA has three months to consider the
applications from the 22 April which would enable an AIFM to
achieve authorisation prior to the 22 July deadline. Therefore,
AIFMs managing AIFs under the transitional arrangement who submit
their application without sufficient time for the FCA to determine
their application by 22 July 2014 will still be able to continue
managing AIFs until the FCA has determined the application.
However, as highlighted on the FCA website, the FCA has outlined
the conditions and potential risks for AIFMs who are not authorised
by the 22 July 2014 noting the AIFM:
"will still need to fully comply with all applicable parts
of the AIFMD, including, where necessary, the appointment of a
will not be able to use the marketing or management passport,
which will hamper an AIFMs efforts to market its funds which are
may be at risk of business interruption if its application is
materially incomplete or deficient and, as a result, authorisation
cannot be granted."
Bedell can assist AIFMs meeting these conditions, by delivering
depositary services, as a stand-alone service or as an integrated
solution with its existing corporate and fund administration
offering, from their London and Jersey offices. As a result of our
long standing relationships with boutique private equity and real
estate houses, as well as some of the world's largest financial
institutions, our experienced professionals are able to provide a
flexible and consultative approach to deliver a bespoke, efficient
and cost-effective depositary service.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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