In a recent communication published by the Financial Conduct Authority ("FCA"), the FCA requested that UK Alternative Investment Fund Managers ("AIFMs") seeking authorisation or a variation of permission under the Alternative Investment Fund Managers Directive, submit their application no later than 22 January 2014 in order to allow the FCA sufficient time to review the application prior to the 22 July 2014 deadline, which marks the end of the transitional period. Should AIFMs seeking authorisation or registration be unable to meet this deadline, they are encouraged to contact the FCA as soon as possible.  
 
In order to manage an AIF, once authorised, AIFMs must have finalised arrangements with a depositary. The FCA is, therefore, strongly encouraging firms to consider their depositary arrangements. Although the AIFM's application will be reviewed by the FCA and authorisation granted without identifying it's appointed depositary, it cannot start managing the AIF in question until a month after the missing information is provided.  The FCA has published a useful guidance note in relation to the information required from AIFMs regarding their depositary arrangements which can be viewed on this link http://www.fca.org.uk/your-fca/documents/aifm-depositary-arrangements.
 
HM Treasury has subsequently issued an update stating that, if a transitional AIFM's application is submitted to the FCA without sufficient time for it to be determined by 22 July 2014, the AIFM will, nevertheless, be able to continue managing AIFs until such determination, so long as (i) an application has been submitted prior to 22 July 2014 and (ii) the AIFM is compliant with the relevant AIFMD requirements (which would include, where relevant, the appointment of a depositary) from 22 July 2014, even if their application has not been determined.

As the application deadline approaches, we are currently assisting a number of firms which are in the process of applying for AIFM authorisation, with their depositary requirements.  These vary from case to case, depending on the firm's requirements and the respective location of their AIFs and target investors.  Some firms require only depositary "lite" services, while others are subject to the full depositary requirements under the AIFMD.  We appreciate that the selection of a depositary is an important part of the AIFM's application and it is vital that the depositary is the right "fit" for the AIFM and its operations.  

Bedell has developed an efficient and cost-effective depositary service to assist AIFMs with the requirements of the AIFMD and will deliver bespoke services in a complementary and non-obtrusive manner, to minimise the impact on the operations of the AIFM and the AIF itself. Our depositary service offering has been developed based on our experience and long standing relationships with boutique private equity and real estate houses and some of the world's largest financial institutions as well as our experience from providing expert legal and fund administration services to alternative investment fund managers for over 20 years. Bedell can deliver depositary services from its London and Jersey offices as a stand-alone service or as an integrated solution with its existing corporate and fund administration offering.  

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.