UK asks for early AIFMD applications

Worried that GPs might wait until the last minute to submit their AIFMD applications, the FCA is requesting applications six months before a July 2014 authorization deadline.

GPs are being urged by the Financial Conduct Authority (FCA) to apply early for authorization under the Alternative Investment Fund Managers Directive (AIFMD).

The UK securities regulator is concerned a stream of applications coming in shortly before a July 2014 authorization deadline will result in some GPs missing the mark.  

The FCA is asking GPs to apply no later than January 22 to allow itself six months to approve applications. 

“It can take up to six months to review an application – particularly if there are a high volume of applications at the same time,” said an FCA spokesperson in an email to PE Manager.

The spokesperson added that the application process is a “fairly rigorous exercise, and can involve lots of detailed discussion and reviews” and early applications will help the authorization process move as efficiently as possible.

One UK-based regulatory lawyer said the FCA “always says it might take six months – that is their statutory maximum. It is actually usually shorter. But I think they are saying that with a July 2014 deadline, that will drive a lot of new applications at once.”  

The directive mandates that regulators take no longer than three months to authorize firms, but with a caveat that permits them to take six months under special circumstances. 

“The three months promise is for complete applications, but the FCA have found most applications [so far] to be incomplete and therefore decided they cannot approve incomplete applications within six months,” said Andrew Shrimpton, global head of regulatory compliance at Kinetic Partners, in an email to PEM.