On 1 April 2014, the FCA warned investment managers managing alternative investment funds ("AIFs") of the potential consequences of not being fully authorized by the FCA under the alternative investment fund managers directive ("AIFMD") by 22 July 2014. Under the transitional measures granted by HM Treasury, alternative investment fund managers ("AIFMs") will be able to continue to manage AIFs until the FCA has determined their application for authorization provided they submit their applications by 22 July 2014. The FCA noted that firms not fully authorized would still need to be fully compliant with all relevant AIFMD requirements from 22 July 2014, including, where necessary, engaging the services of a depositary, would not be entitled to passport their activities into other EEA member states until authorization and the relevant notification is processed and may also risk business interruption if their application is materially incomplete or deficient and, as a result, authorization refused. The FCA is encouraging firms to apply for authorization under the AIFMD by 22 April 2014 at the latest.

Further information is available at: http://www.fca.org.uk/firms/markets/international-markets/aifmd/latest-news .

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