The consultation paper looks at rules and guidance on transposing the requirements of the AIFMD into UK law, which will require making changes to primary and secondary legislation and also to the FSA Handbook.
Treasury will consult on the changes to legislation and while the FSA expects to have little scope for discretion in how it implements the new rules, it wants to address some issues that it might be able to influence.
Namely:
- The prudential regime for all types of alternative investment fund manager (AIFM);
- The regime for depositaries; and
- The level one directive requirements on AIFMs.
In its first consultation paper the UK regulator will look at best ways to implement the directive in terms of the first two points above.
The directive applies to investment companies as well as a wide range of firms that manage funds, including hedge funds, private equity funds and retail investment funds.
Only the level one directive is reflected in the proposed rules and guidance because the European Commission is yet to issue its level two regulation.
Sheila Nicoll, head of conduct policy at the FSA, said: “We want to give firms as much time as we can to consider our proposals and prepare for implementation. Work is continuing at EU level and there are still uncertainties around aspects of AIFMD. However, there are a number of areas where we do have certainty and we have focused on these in our consultation. Where we can, we will take a flexible approach that seeks to avoid imposing requirements which go beyond those of the directive.”
The consultation closes on 1 February 2013 and the FSA asks for responses before then. It also expects to publish a second consultation on other aspects of AIFMD implementation in February.
