FCA calls for AIFMD applications by January 2014

Fund managers are currently still able to operate AIFs under the transitional provisions set out in regulation 72 of the AIFMD, allowing them to manage funds with authorisation from the FCA until 21 July 2014.

Following the 21 July 2014 deadline, fund managers must submit an application to be registered or authorised beforehand in order to continue operating. The regulator has requested that applications be submitted by late-January, as it could take up to six months to process the application.

Commenting on the news, Andrew Shrimpton, global head of regulatory compliance at Kinetic Partners, said: "This is a major announcement."

"Many firms have been considering waiting until later in the transitional period to submit their applications, but the FCA [has] been clear that in some circumstances [it] may require six months to determine a firm's application. We would advise all firms considering registration as a UK-based fund manager under AIFMD to submit applications by the end of January as, if there are delays in an application, firms may have to cease business until the point at which the application has been fully determined," explained Shrimpton.

The FCA has also advised that firms seeking authorisation as full-scope UK AIFMs, or ones that need to be registered, must complete their application no later than 22 April 2014.

If the application deadline is missed, individuals acting as fund managers will be in breach of section 20 of FSMA; therefore, as Shrimpton points out, firms may have to stop trading.

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• Topics
• Regulation
• UK / Ireland
• AIFM Directive
• United Kingdom