The document discusses the key aspects and requirements of the Alternative Investment Fund Managers Directive (AIFMD), an EU directive that introduces a regulatory framework for managers of alternative investment funds. It covers topics such as what an alternative investment fund (AIF) and its manager (AIFM) are, the authorization process for AIFMs, capital requirements, conduct standards, transparency and reporting obligations, and the impact on areas like documentation, service providers, and marketing. Managers have until July 2014 to comply with the new rules by becoming authorized or ensuring any entities managing AIFs meet the regulatory standards.
Solvency ii Association
http://www.solvency-ii-association.com
We are pleased to announce our updated Distance Learning and Online Certification programs:
1. Certified Solvency ii Professional (CSiiP) Distance Learning and Online Certification Program
http://www.solvency-ii-association.com/CSiiP_Distance_Learning_Online_Certification_Program.htm
2. Certified Solvency ii Equivalence Professional (CSiiEP) Distance Learning and Online Certification Program
http://www.solvency-ii-association.com/CSiiEP_Distance_Learning_Online_Certification_Program.htm
Register to receive Solvency II / Omnibus II related alerts, opportunities, updates, our monthly newsletter and limited time offers for our Solvency II / Omnibus II Training and Certification programs:
http://forms.aweber.com/form/28/1910009328.htm
Solvency ii Association
http://www.solvency-ii-association.com
We are pleased to announce our updated Distance Learning and Online Certification programs:
1. Certified Solvency ii Professional (CSiiP) Distance Learning and Online Certification Program
http://www.solvency-ii-association.com/CSiiP_Distance_Learning_Online_Certification_Program.htm
2. Certified Solvency ii Equivalence Professional (CSiiEP) Distance Learning and Online Certification Program
http://www.solvency-ii-association.com/CSiiEP_Distance_Learning_Online_Certification_Program.htm
Register to receive Solvency II / Omnibus II related alerts, opportunities, updates, our monthly newsletter and limited time offers for our Solvency II / Omnibus II Training and Certification programs:
http://forms.aweber.com/form/28/1910009328.htm
The "Association Francaise des Investisseurs en Capital" (French Private Equity Investors Association; hereafter "AFIC") notes that the private equity business involves specialized teams analyzing and then making medium- or long-term equity investments in companies that are generally unlisted, and monitoring these investments until an exit is achieved. AFIC also notes that under the association's by-laws (status), members should offer both their partners and their clients transparency, equal treatment and optimum disclosure, thus guaranteeing the quality of the services that they offer.
Through the fair and honest practices of its members in their transactions, AFIC seeks to enhance the standing of the private equity business and thereby make a positive contribution to the French corporate world.
Although its members do not all have the same legal status and are not all subject to the same regulations, AFIC seeks to harmonize the business practices of its members in order to achieve an image of quality that is both uniform and consistent with its objectives.
AFIC decided to draw up this Code of Ethics, which will apply to all AFIC members according to the terms of article 6 of its by-laws, and which replaces the previous version of that article.
In order to facilitate the proper application of the provisions in this code by its members, AFIC has produced and will continue to produce guides and recommendations on the implementation of the code’s principles. AFIC makes its list of guides and recommendations available to the public using all available means.
In light of a lot of news relating to sham entities garnering funds through fraudulent investment schemes with promise of huge returns mainly in the name of property development and agriculture, SEBI has in the last few years, intensified its scrutiny of investment structures that raise domestic capital on an unregulated basis. SEBI regulates an investment scheme wherein several individuals come together to pool their money for investing in a particular asset(s) and for sharing the returns arising from that investment as per the agreement reached between them prior to pooling in the money under SEBI (Collective Investment Schemes ) Regulations, 1999
SEBI notified SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015 (“LODR”) on September 2, 2015 LODR consolidated the provisions contained in different listing agreements viz Equity Listing Agreement, listing agreement for listing on SME Exchange, LA for listing IDR,LA for listing of Debt Securities, LA for Securitised Debt Instruments and provisions of SEBI (ICDR) Regulations.
Legal shorts 05.12.14 including Chancellor’s 2014 Autumn statement and FCA up...Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
How Passage of the JOBS Act Impacts Regulation D: Private Placement and Gene...ManagedFunds
The recently enacted Jumpstart Our Business Startups (JOBS) Act contained a provision directing the Securities and Exchange Commission to amend Regulation D to remove the ban on general solicitation and advertising of private offerings. This change will allow alternative investment managers and others conducting private offerings to have increased legal certainty when communicating with investors and the general public, which will enable these managers to share more information and promote greater understanding of the industry. Amending Regulation D will not change the type of investor – institutions and high net-worth individuals – able to buy into a private offering, but it will lead to more transparency in the alternative investment industry.
The SIF is a regulated, operationally flexible and fiscally efficient multipurpose investment fund regime for an institutional and qualified investor base.
Country Comparative Legal Guides to Insurance & Reinsurance, Ireland 2017Matheson Law Firm
This country-specific Q&A gives a pragmatic overview of the law and practice of insurance & reinsurance law in Ireland. It addresses topics such as contract regulation, licensing, penalties, policyholder protection, alternative dispute resolution as well as personal insight and opinion as to the future of the insurance market over the next five years.
The law related to REIT was introduced by the Capital Market Authority of Kenya in June 2013, making REIT as an Investment asset class for potential Real Estate investors to use it as vehicle to tap the dynamic and rapidly expanding Kenyan Property Market.The article gives an over view of these regulations. Kenya is the 3rd African country to have REIT's as an investment asset class.
"AIFMD & Private Equity Managers - An implementation checklist" - Global Pe...GECKO Governance
The new European AIFMD regulations will significantly impact the private equity (PE) industry. The regulations were primarily designed for hedge funds but are being applied wholesale to the private equity industry. Compliance will present a challenge for many PE managers.
In this white paper we will look at the main impacts of AIFMD on private equity managers and what they should be doing to comply
You can sign up for all our Global Perspectives white papers here:- http://lnkd.in/BthCg4
The "Association Francaise des Investisseurs en Capital" (French Private Equity Investors Association; hereafter "AFIC") notes that the private equity business involves specialized teams analyzing and then making medium- or long-term equity investments in companies that are generally unlisted, and monitoring these investments until an exit is achieved. AFIC also notes that under the association's by-laws (status), members should offer both their partners and their clients transparency, equal treatment and optimum disclosure, thus guaranteeing the quality of the services that they offer.
Through the fair and honest practices of its members in their transactions, AFIC seeks to enhance the standing of the private equity business and thereby make a positive contribution to the French corporate world.
Although its members do not all have the same legal status and are not all subject to the same regulations, AFIC seeks to harmonize the business practices of its members in order to achieve an image of quality that is both uniform and consistent with its objectives.
AFIC decided to draw up this Code of Ethics, which will apply to all AFIC members according to the terms of article 6 of its by-laws, and which replaces the previous version of that article.
In order to facilitate the proper application of the provisions in this code by its members, AFIC has produced and will continue to produce guides and recommendations on the implementation of the code’s principles. AFIC makes its list of guides and recommendations available to the public using all available means.
In light of a lot of news relating to sham entities garnering funds through fraudulent investment schemes with promise of huge returns mainly in the name of property development and agriculture, SEBI has in the last few years, intensified its scrutiny of investment structures that raise domestic capital on an unregulated basis. SEBI regulates an investment scheme wherein several individuals come together to pool their money for investing in a particular asset(s) and for sharing the returns arising from that investment as per the agreement reached between them prior to pooling in the money under SEBI (Collective Investment Schemes ) Regulations, 1999
SEBI notified SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015 (“LODR”) on September 2, 2015 LODR consolidated the provisions contained in different listing agreements viz Equity Listing Agreement, listing agreement for listing on SME Exchange, LA for listing IDR,LA for listing of Debt Securities, LA for Securitised Debt Instruments and provisions of SEBI (ICDR) Regulations.
Legal shorts 05.12.14 including Chancellor’s 2014 Autumn statement and FCA up...Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
How Passage of the JOBS Act Impacts Regulation D: Private Placement and Gene...ManagedFunds
The recently enacted Jumpstart Our Business Startups (JOBS) Act contained a provision directing the Securities and Exchange Commission to amend Regulation D to remove the ban on general solicitation and advertising of private offerings. This change will allow alternative investment managers and others conducting private offerings to have increased legal certainty when communicating with investors and the general public, which will enable these managers to share more information and promote greater understanding of the industry. Amending Regulation D will not change the type of investor – institutions and high net-worth individuals – able to buy into a private offering, but it will lead to more transparency in the alternative investment industry.
The SIF is a regulated, operationally flexible and fiscally efficient multipurpose investment fund regime for an institutional and qualified investor base.
Country Comparative Legal Guides to Insurance & Reinsurance, Ireland 2017Matheson Law Firm
This country-specific Q&A gives a pragmatic overview of the law and practice of insurance & reinsurance law in Ireland. It addresses topics such as contract regulation, licensing, penalties, policyholder protection, alternative dispute resolution as well as personal insight and opinion as to the future of the insurance market over the next five years.
The law related to REIT was introduced by the Capital Market Authority of Kenya in June 2013, making REIT as an Investment asset class for potential Real Estate investors to use it as vehicle to tap the dynamic and rapidly expanding Kenyan Property Market.The article gives an over view of these regulations. Kenya is the 3rd African country to have REIT's as an investment asset class.
"AIFMD & Private Equity Managers - An implementation checklist" - Global Pe...GECKO Governance
The new European AIFMD regulations will significantly impact the private equity (PE) industry. The regulations were primarily designed for hedge funds but are being applied wholesale to the private equity industry. Compliance will present a challenge for many PE managers.
In this white paper we will look at the main impacts of AIFMD on private equity managers and what they should be doing to comply
You can sign up for all our Global Perspectives white papers here:- http://lnkd.in/BthCg4
"Hedge Funds & AIFMD - what you should be doing to comply" - Global Perspect...GECKO Governance
The AIFMD regulation comes into force in the 27 countries of the European Union in July 2013. The main tenets of this wide ranging legislation are now well known throughout the industry.
Put simply, AIFMD will change the alternative investment industry forever.
This is the first in a 2 part "Global Perspectives" white paper examining what fund managers should be doing right now to ensure they are ready for AIFMD. We will publish Part 2 of this white paper next month (June 2013).
Email shane@globalperspective.co.uk to receive this free white paper.
Currently fund managers should be completing a detailed impact assessment to ensure they are ready for AIFMD.
Global Perspectives (www.globalperspective.co.uk) can assist in completing your AIFMD impact assessment and implementing its requirements.
Sign up for all free monthly Global Perspectives White Papers here:-
http://www.globalperspective.co.uk/aifmd#!whitepapers/c1a4e
or email:- shane@globalperspective.co.uk
EUROPEAN UNION REGULATION AND THE USE OF UCITS FUNDS: AN EFFECTIVE MEANS OF INVESTOR PROTECTION OR A FALSE SENSE OF
SECURITY? PHILIPPA-LUCY ROBERTSON AND DOMINIC LAWTON-SMITH OF JP FUND FOUNDATIONS ASSESS THE OPTIONS
New Fund Management Regulations Issued For Ifsc-Gift City To Overhaul Fund Go...Economic Laws Practice
In an important development for the fund industry, the International Financial Services Centre Authority (IFSCA) has notified the IFSCA (Fund Management) Regulations, 2022 (available here) (IFSCA Fund Regulations).
New Fund Management Regulations Issued For Ifsc-Gift City To Overhaul Fund Go...Economic Laws Practice
In an important development for the fund industry, the International Financial Services Centre Authority (IFSCA) has notified the IFSCA (Fund Management) Regulations, 2022 (available here) (IFSCA Fund Regulations).
In this edition of Regulatory Focus, Duff & Phelps provides a synopsis of the FCA's latest news and publications issued in May 2017.
Highlights include:
MiFID II Topics and Challenges
FCA's increased focus on cyber resilience
Guidance on the Criminal Finances Act 2017
This presentation highlights a number of the most important policy issues on which MFA remains focused. Issues covered in this document include, among others:
• Promoting non-discriminatory tax policy.
• Taxation of partnerships
• CFTC reauthorization
• Regulating systemic risk
• Protecting investors
• Promoting the stability of markets through central clearing of derivatives
• Capital formation and the JOBS Act implementation
• Equity market structure
Euro shorts 16.12.16 including Brexit: European Parliament briefing and Brexi...Cummings
Welcome to Euro Shorts, a short briefing on some of the week’s developments in the financial services industry in Europe.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Legal shorts 21.10.16 including criminal finances bill introduced and mld4Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Claire Cummings
020 7585 1406
claire.cummings@cummingslaw.com
www.cummingslaw.com
Legal shorts 09.09.2015 including MiFID II: FCA publishes new webpage and new...Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry.
Listen to this week's Legal Shorts on CLTV by going to http://vimeo.com/cummingslaw
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Euro shorts 09.09.16 including Brexit update: Theresa May meeting with Donald...Cummings
Welcome to Euro Shorts, a short briefing on some of the week’s developments in the financial services industry in Europe.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Euro shorts 29.01.16 including cameron attends last minute talks on uk eu mem...Cummings
Welcome to Euro Shorts, a short briefing on some of the week’s developments in the financial services industry in Europe.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Legal shorts 18.12.15 including mi fid ii fca first consultation and mifid ...Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Euro Shorts 11.12.15 including Financial transaction tax update and BaFin tig...Cummings
Welcome to Euro Shorts, a short briefing on some of the week’s developments in the financial services industry in Europe.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Legal Shorts 11.12.15 including FCA makes changes to GABRIEL and FCA roundtab...Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry.
Listen to this week's Legal Shorts on CLTV by going to http://vimeo.com/cummingslaw
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Legal shorts 06.11.15 including SM&CR authorised person definition for incomi...Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services
industry.
Listen to this week's Legal Shorts on CLTV by going to http://vimeo.com/cummingslaw
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Euro shorts 06.11.15 including ESMA consultation on indirect clearing under ...Cummings
Welcome to Euro Shorts, a short briefing on some of the week's developments in the financial services
industry in Europe.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Euro shorts 16.10.15 including Bloomberg's Hedge Fund Start Up Breakfast and ...Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry.
Listen to this week's Legal Shorts on CLTV by going to http://vimeo.com/cummingslaw
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Legal shorts 28.08.15 including esma update on waivers from mi fid pre trade ...Cummings
Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Claire Cummings
020 7585 1406
claire.cummings@cummingslaw.com
www.cummingslaw.com
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
#US
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
2. www.cummingslaw.com
1 What is the AIFMD?
The AIFMD is an EU directive aimed at
introducing a harmonised regulatory framework
across the EU for EU-established managers
(AIFMs) of alternative investment funds (AIFs).
2 What is an AIFM?
An AIFM is an entity which provides, at a
minimum, portfolio management and risk
management services to one or more AIFs as its
regular business, irrespective of where the AIFs
are located or what legal form the AIFM takes.
3 What is an AIF?
Any collective investment undertaking, including
investment compartments thereof, which
raises capital from a number of investors with
a view to investing it in accordance with a
defined investment policy for the benefit of
those investors and which does not require
authorisation pursuant to the UCITS Directive.
This wide definition covers many types of fund
(regardless of structure), including hedge funds,
property funds, joint ventures, family office
vehicles, closed-ended funds and unregulated
collective investment schemes generally.
However, a de minimus rule will apply to smaller
funds and managed accounts are not covered
by the Directive (assuming that they are not
structured as “collective investment schemes”).
4 What main issues will the AIFMD
cover?
The main issues will include:
Authorisation - AIFMs will be required to be
authorised and subject to supervision by the
regulator in their home member state;
Capital Requirements - capital requirements will
be imposed of at least EUR125,000 on AIFMs;
Additional requirements to cover professional
negligence risks will also be put in place;
COBS etc - all AIFMs will be subject to appropriate
governance and conduct of business standards and
will be required to have robust systems in place to
manage risks, liquidity and conflicts of interest;
Remuneration - AIFMs must have remuneration
policies and practices in place;
Valuation - procedures for independent valuation
of AIF assets must be put in place;
Delegation - restrictions will be put in place on
the delegation of AIFM functions;
Key service providers - key service providers,
including depositaries, must be subject to robust
regulatory standards;
Enhanced transparency - the supervisors,
investors and other key stakeholders of AIFMs
and the funds they manage must receive
enhanced transparency. The requirements
will apply to disclosure to investors prior to
investment, reporting obligations to competent
regulatory authorities, detailed disclosures in
AIF annual reports and AIFM disclosures about
investment in investee companies;
Passports - a European passport will be
introduced under which AIFMs will be able to
manage and market EU AIFs to professional
investors throughout the EU, subject to
compliance with regulatory standards (which
may, from 2015, be extended to non-EU AIFs
subject to numerous conditions);
The third country issue - conditions will be
imposed on the management and marketing of
non-EU AIFs by non-EU AIFMs; and
Supervision - competent authorities (i.e.
regulators) will be afforded wide powers of
inspection and intervention.
AIFMD: What it is and
what to do.
www.cummingslaw.com
3. www.cummingslaw.com
5 What needs to be done by when?
At the end of this paper is a timeline.
To summarise the issue of applications to the
FSA and its successor authority, the FCA, firms
which are already authorised and managing or
marketing AIFS before 22 July 2013 will have one
year in which to become AIFMD compliant and
submit an application for authorisation as an
AIF manager (the FSA proposes a new regulated
activity of managing an AIF, plus another new
regulated activity of managing a UCITS).
However, a firm which proposes to begin
managing an AIF for the first time after 22 July
2013 will not benefit from the transitional
period so will have to be fully compliant with the
Directive before it begins to manage an AIF (or
indeed market any AIF within the EU).
Thus, a firm can be operational before 22 July
2014, provided it is either:
(i) fully compliant from day one (if not
authorised with the right permissions under
the law prior to 22 July 2013); or
(ii) if authorised and with the right permissions
prior to that date, a firm becomes fully
compliant and submits an application for
authorisation as an AIF manager (in effect,
an application to vary its permission (VoP)
to include the new regulated activity of AIF
management) by 22 July 2014.
6 What will the relevant controlled
functions be and how will the FSA
handbook reflect the changes?
The FSA, and its successor authority the FCA, will
create new controlled functions of AIF manager,
AIF depositary, UCITS manager and UCITS
depositary. Those managers wishing to become
AIFs will need to apply to vary their permissions
accordingly and new firms will need to make a
new application. No forms are as yet available.
It is important to remember that the scopes of
MiFID and AIFMD do not tally and that the scope
of MiFID services that AIFMs can undertake,
by virtue of their authorisation as AIFMs, is
narrower.
Transposition of the final rules implementing the
AIFMD is intended to be located primarily in a
new sourcebook, FUND, which will replace COLL
and will have a wider scope to reflect the range
of fund managers, depositaries and other firms
affected by the AIFMD.
7 Can firms become AIFMs or will
a new entity need to be appointed to
this role?
Either can be done and the choice will depend on
specific circumstances.
Firms will need to take legal and regulatory
advice on whether to apply to be an AIFM or
whether to set up a new entity to undertake this
role and delegate down certain functions to a
MiFID investment manager. However, there is
a limit on what can be delegated as the AIFM is
expected to retain some functions, at the very
least being that of risk manager. It is hoped that
the Level 2 requirements will bring greater clarity
on this point.
8 Will compliance documentation,
including ICAAP, need to be
amended?
Where a firm applies to become an AIFM, it
will need to update all compliance and financial
documentation, including its ICAAP, compliance
manual and monitoring programme.
9 What will the new regulatory
capital requirements be?
The FSA has proposed three new prudential
categories to describe the capital requirements
applicable to AIFMs, as follows:
• collective portfolio management firm (no
MiFID services) (CPMs)
• internally managed AIF
• collective portfolio management investment
firm (provides MiFID services) (CPMIs)
4. www.cummingslaw.com
CPMs will have to meet an initial capital
requirement of €125,000 and then maintain
own funds on an ongoing basis of at least the
higher of:
• €125,000 plus 0.02% of the portfolios of
UCITS and AIFs under management over
€250 million; and
• one quarter of the firm’s relevant fixed
expenditure.
Internally managed AIFs will need to meet initial
capital requirements of at least €300,000 out of
their own funds on an ongoing basis.
CPMIs will need to hold the higher of AIFMD’s
own funds requirements and the capital
requirements currently set out for MiFID firms.
10 How will the appointment of an
AIFM be documented?
The AIFM will need to be appointed under
an agreement with the fund whose assets it
manages. Where an investment management
agreement is already in place it will need to be
amended and where a new structure is to be used,
new documents will need to be put in place.
If there is to be an AIFM who delegates to a
MiFID investment manager, both documents
need to be prepared carefully to ensure the
AIFMD’s delegation rules are met and that the
AIFM retains sufficient activities. All parties will
also need to consider who should be able to
enforce which contracts and where liability lies
for their respective acts or omissions.
11 Will the offering memorandum
need to be amended?
Each offering memorandum of an AIF will need to
be updated to describe and disclose fully the new
arrangements. These will include not just who
will manage the AIF, but how brokerage, custody
and depositary functions will be exercised.
The updated offering memorandum will need
to be fully scrutinised and approved by the AIF’s
directors and filed with the relevant authority.
Where the AIF is listed, the listing particulars
will need to be updated in accordance
with the relevant listing regime and correct
announcements made.
12 Will there be any impact on
prime brokerage appointments?
Prime brokers must be situated in the EEA and
will need to negotiate with depositaries on the
control of the AIF’s assets. More detail will come
when the Level 2 rules are published, but the
agreement of prime brokers and depositaries on
the control of assets will be complex and costly.
All AIFs will be required to appoint a depositary.
The duties of a depositary are greater than those
of a custodian or an administrator and extend
to what may be interpreted as a strict liability
toward the AIF’s assets. Inevitably the new
arrangements will lead to greater costs being
imposed on AIFs.
Again, the Level 2 rules will provide greater
clarity, but the impact of the AIFMD on the
holding and control of assets is arguably its area
of greatest impact while the details are still
unclear.
13 Will there be any impact on
administrator appointments?
The assets of an AIF must be independently
valued. This goes further than merely calculating
the NAV. It is likely that the AIFMD will lead to
administrators having to provide more “value-
added” services, such as valuation and risk
monitoring.
14 What is the definition of
“marketing”?
This is the direct or indirect offering or
placement, at the initiative of the AIFM or on
behalf of the AIFM, of units or shares in an AIF it
manages to or with investors domiciled or with a
registered office in the EU.
This means that AIFMD will not apply to: (i)
marketing outside the EU (although an EU-based
manager will need to be authorised to manage
the AIF, even if the AIF is not marketed in the EU);
5. www.cummingslaw.com
(ii) “reverse solicitation”, though this may be hard
to prove; or (iii) funds marketed on the basis of a
current Prospectus Directive prospectus as of 22
July 2013.
15 How do different combinations
of EU and non-EU AIFs and AIFMs
comply with the marketing rules?
An EU AIFM marketing an EU AIF will need to
take the following steps:
• notify competent authorities in own state;
• notify any other states in which intends to
market (local competent authorities then
notifies other member state authorities);
• comply in full with the Directive and with
other member states’ marketing laws; and
• make use of passporting rights, where
applicable, as of 22 July 2013.
An EU AIFM marketing a non-EU AIF without a
“passport” will need to comply with the following
(and please note that the “private placement”
routes permitting such marketing under
individual member states’ laws may be ‘switched
off’ from 2018 if the “passport” is ‘switched on’
for non-EU AIFs in 2015):
• be AIFMD compliant;
• the AIF must originate from a country which
has a cooperation agreement in place with
the AIF’s supervisory authorities;
• the AIF must originate from a country which
is not non-cooperative for FATF purposes;
and
• the AIF must originate from a country which
has an OECD model tax information exchange
agreement in place with the AIF home
country and each member state where the
AIF is to be marketed.
A non-EU AIFM marketing EU AIF with a
“passport” will need to comply with the
following, with effect from 2015 (subject to ESMA
advice):
• will need to have prior authorisation by an
EU “regulator of reference” and be compliant
with the AIFMD;
• will need legal representative in the member
state of reference;
• will need to comply with the EU supervisory
authorities;
• must originate from a country which is not
non-cooperative for FATF purposes;
• must originate from a country which has a
tax information exchange agreement with
the member state of reference; and
• must originate from a country which will not
impede the supervision of the AIFM.
A non-EU AIFM marketing non-EU AIF without
a “passport” will need to comply with the
following:
• may make use of the private placement rules
which apply (but which may be revoked
come 2018, subject to ESMA advice) in
individual member states;
• comply with annual reporting, disclosure
and reporting requirements and also
requirements re acquiring control over
unlisted companies, asset-stripping etc.
(where relevant);
• cooperation agreements must be in place
between competent authorities of member
states where the AIF is marketed and the
supervisory authorities of the AIFM and of
the non-EU AIFs; and
• both the AIFM and the AIF(s) must originate
from a country which must not be non-
cooperative for FATF purposes.
6. www.cummingslaw.com
A non-EU AIFM marketing an EU AIF with
a “passport” will need to comply with the
following, with effect from 2015 (subject to
ESMA advice):
• agree a regulator of reference in the EU;
• originate from a country which has a
cooperation agreement between the
member state of reference and the AIFM’s
supervisory authorities;
• originate from a country which is not non-
cooperative for FATF purposes; and
• originate from a country with an OECD
model tax information exchange agreement
in place with the member state of reference
and with each member state where the AIF is
to be marketed.
An EU AIFM marketing a non-EU AIF with
a “passport” will need to comply with the
following, with effect from 2015 (subject to the
“passport” for non-EU AIFs being ‘switched on’):
• be AIFMD compliant;
• cooperation agreement must be in place
between AIFM’s member state and AIF’s
supervisory authorities;
• the AIF must originate from a country which
is not non-cooperative for FATF purposes;
and
• the AIF must originate from a country with
an OECD model tax information exchange
agreement in place with the member state
of reference and with each member state
where the AIF is to be marketed.
7. www.cummingslaw.com
DATE ORGANISATION ACTION
Late 2012 EU Level 2 rules to be published (much delayed)
1 February 2013 FSA Closing date for CP1 (CP12/32).
February 2013 FSA Second consultation paper (CP2) on the UK’s
implementation of AIFMD expected
By end of March 2013 HM Treasury Consultation on draft AIFMD Regulations 2013
due
June 2013 FCA Policy statement on the UK’s implementation of
AIFMD (covering CP1 and CP2) due
22 July 2013 All member states AIFMD needs to be transposed into national law
and implemented by member states
23 July 2013 FCA Date from which the FCA expects to be in a
position to receive applications for authorisation
or a VoP from prospective AIFMs
22 July 2014 FCA Date by which firms already managing or
marketing AIFs before 22 July 2013 will be
expected to apply for authorisation or a VoP
22 July 2015 ESMA Opinion issued on whether to allow the EU
passport for third country AIFMs and AIFs
22 October 2015 ESMA EU passport for third country AIFMs and AIFs
comes into force, if so recommended by ESMA
22 July 2017 EC Review of AIFMD begins. Suggests AIFMD II
22 October 2018 ESMA Issue statement on whether to allow private
placement regime to continue
22 January 2019 EC Decision on whether to allow private placement
regime to continue
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This document is for general guidance only. It does not constitute advice