FCA AIFM application looms15 Apr 2014
FCA requests AIFMs to submit applications by 22 April
Alternative Investment Fund Managers ("AIFMs") relying on the one year transitional provisions under the Alternative Investment Fund Managers Directive ("AIFMD") have been encouraged by the Financial Conduct Authority ("FCA") to submit their applications to manage Alternative Investment Funds ("AIF") before the 22 April 2014.
As a result, the FCA has three months to consider the applications from the 22 April which would enable an AIFM to achieve authorisation prior to the 22 July deadline. Therefore, AIFMs managing AIFs under the transitional arrangement who submit their application without sufficient time for the FCA to determine their application by 22 July 2014 will still be able to continue managing AIFs until the FCA has determined the application. However, as highlighted on the FCA website, the FCA has outlined the conditions and potential risks for AIFMs who are not authorised by the 22 July 2014 noting the AIFM:
• "will still need to fully comply with all applicable parts of the AIFMD, including, where necessary, the appointment of a depositary;
• will not be able to use the marketing or management passport, which will hamper an AIFMs efforts to market its funds which are currently fundraising;
• may be at risk of business interruption if its application is materially incomplete or deficient and, as a result, authorisation cannot be granted."
Bedell can assist AIFMs meeting these conditions, by delivering depositary services, as a stand-alone service or as an integrated solution with its existing corporate and fund administration offering, from their London and Jersey offices. As a result of our long standing relationships with boutique private equity and real estate houses, as well as some of the world's largest financial institutions, our experienced professionals are able to provide a flexible and consultative approach to deliver a bespoke, efficient and cost-effective depositary service.
For further information about Bedell's depositary service offering and/or a price estimate, please contact Philip Bolton.