2. www.cummingslaw.com
AIFMs (“managers”) will need to begin planning
and preparing as soon as possible for the
implementation of AIFMD on 22 July 2013.
The first step is to talk to UK counsel to
discuss their specific structure and consider
what actions need to be taken. Initially,
managers and UK counsel should:
❏❏ review current arrangements and
establish the identities of the manager
and each AIF (“fund”) and review
any delegation arrangements (e.g.
with investment advisors);
❏❏ review current arrangements for the
carrying out of risk management, internal
audit and compliance functions and
portfolio management and consider
how such arrangements should be
amended, if necessary, and put in
place necessary documentation;
❏❏ review investment policy and strategy and
consider requirements which may attach
to investments above any relevant control
threshold (see articles 26-30 AIFMD);
❏❏ review all potential passporting
arrangements, considering the location
of the manager and each fund and the
relevant rules applying to each;
❏❏ review calculations of AUM and
leverage and consider possible
reporting required to the FSA;
❏❏ review additional own funds and/or
PI insurance requirements to ensure
adequate funds and/or cover are in place;
❏❏ monitor FSA activity on implementation
of AIFMD and complete and
submit necessary FSA forms;
❏❏ review whether co-operation agreements
need to be in place between the UK
and the country of each fund’s and/
or the manager’s domicile;
❏❏ review and negotiate administration and
depository agreements to meet directive
requirements (including depositary rules);
❏❏ review and update the offering
memorandum to take account of all changes
consequent on the AIFMD requirements and
to ensure that the offering memorandum
contains full details of any changes in
maximum leverage levels, risk profile and
risk management systems employed;
❏❏ review and update all marketing
documentation;
❏❏ review all internal and reporting procedures
and amend to comply with the AIFMD.
These include, for example, calculating
and monitoring AUM and leverage (as
per above), risk management, conflicts
of interest and requirements relating
to control over non-listed issues; and
notification of principal assets with
sectoral and geographic breakdowns and
principal exposures or concentrations;
❏❏ review all procedures for reporting to
investors and regulators and amend
to comply with the AIFMD.
AIFMD: Checklist for Private
Equity Managers.
www.cummingslaw.com
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This document is for general guidance only. It does not constitute advice
January 2013
