News & Analysis

UK accepting AIFM applications

The FCA will consider granting early authorization to firms who need to be approved by the directive's looming July 22 go live date.

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UK regulator the Financial Conduct Authority (FCA) said it will consider draft applications for GPs seeking authorization under the Alternative Investment Fund Managers (AIFM) directive ahead of a July 22 transposition date. 

It was unclear whether the FCA would be in a position to grant authorization requests by next month's deadline, leading some GPs to wonder if a pan-EU marketing passport would be made available to approved firms on day one of the directive's implementation date.  

Only firms that “have a good reason” will be granted early authorization, the FCA said on its website, adding “where this is not the case we will challenge those firms”. 

Last month the FCA asked firms to fill out a survey if they wanted to become authorized under the directive as of 22 July. The regulator discovered that some 200 UK fund managers may have their marketing and management activities disrupted if authorization wasn't granted by the directive's implementation date. 

Firms that apply for early authorization will not be treated as though formally applying for the directive, meaning GPs will be asked to re-confirm their application when the directive comes into force next month. 

Early authorization forms must be filed alongside a “schedule of AIFs” where a manager provides details on each fund it manages and where they will be marketed. GPs seeking approval will also need to provide information proving compliance with the directive, including for example the identity of the funds’ depositary. 

The FCA said that it cannot guarantee approval by the July 22 transposition date. However the FCA said it will “endeavor to indicate promptly to firms how we would be minded to determine their application”,

The UK closely follows Ireland who became the first EU state to issue application forms and detailed rules for GPs to become authorized under the directive last month.

For a more in-depth look at how major EU sovereigns are preparing for AIFM implementation, see the upcoming July issue of PE Manager.