MFA Responds to UK FSA’s Consultation on Implementation of AIFMD

MFA responded to the UK Financial Service Authority’s consultation on the implementation of the Alternative Investment Fund Managers Directive (AIFMD).  While there are several issues covered in our responses, MFA highlighted the following key points:

  • Transitional provisions – these provisions should apply equally to existing UK/EU AIFMs as well as to existing non-EU AIFMs; there should be a level playing field among all existing AIFMs, regardless of where they are established.
  • Scope – an EU delegate of a non-EU AIFM should not be required to be authorised under the AIFMD.
  • Remuneration – AIFMs (who by definition carry on portfolio management activities) should be subject to no more onerous remuneration requirements than MiFID portfolio management firms. Both should be treated as “level 3” firms for the purposes of the Remuneration Code.

This consultation paper is the first of two on rules and guidance to transpose the requirements of the AIFMD into UK law; the second is expected later this year.