Fund managers and depositaries have a transitional year in which to obtain the new AIFMD permissions and “should be considering how their business may be impacted, including planning sufficient time in which to become authorised”, the Financial Conduct Authority has said.
This directive came into effect yesterday (22 July) and aims to establish an EU-wide framework for monitoring and supervising risks posed by alternative investment fund managers and the funds they manage.
At the same time it gives AIFMs an EU-wide passport to manage alternative funds and market them to professional investors, creating new opportunities to access European investors.
On 28 June the FCA published a policy statement setting out its rules for implementing AIFMD.
The FCA said it has been working proactively with firms to identify any whose business would be disrupted by the implementation of the directive.
The regulator said a number of firms have benefitted from the FCA opening early for applications and the FCA will continue to work with the industry to limit potential business disruption caused by the directive.
Last year, the now defunct Financial Services Authority estimated that the one-off costs of implementing AIFMD into UK law will be £5m.
Chris Woolard, director of policy, risk and research said: “The FCA is delighted to have been able to meet its implementation objectives to deliver the directive on time and with minimal disruption to firms currently conducting cross-border activities.
“This has been another example of the FCA’s willingness to work in a pragmatic way with the industry.”