25/01/2012 Author: Tony Griffiths

FSA publishes AIFMD discussion paper

The Financial Services Authority (FSA) has given the first clues as to how the Alternative Investment Fund Managers Directive (AIFMD), the EU’s controversial fund regulation, will be implemented in the UK, with the publication of a discussion paper.

Considered a means of generating debate before the publication of a more detailed consultation paper in the second half of the year, the 102-page document is light on clarity on several issues, notably scope and remuneration, said analysts at PricewaterhouseCoopers (PWC).

“The discussion paper poses more questions than answers, however this should be seen by the industry as a great chance to provide those answers and influence the policy,” said James Greig, partner at PwC, in a company statement.

“It will disappoint some that the FSA has provided no further clarity on a number of issues – in particular, which entities will be managers and funds within the scope of the directive and how remuneration issues may be implemented.

“But this might in time be regarded as a wise choice given a number of other key aspects of AIFMD remain undecided at European level,” he added.

Among several significant additions to the report included: the introduction of an internally-managed fund regime similar to European domiciles such as Dublin; and provisions requiring those entities that wish to become depositories to increase internal capital. 

The FSA, which concludes the paper with a list of 69 key questions, has requested that all comments regarding the publication be in by 23 March 2012.