Summary
FUND 3.2 of the FCA Handbook specifies information to be made available to investors before they invest and, in some cases, on an ongoing basis, in line with the instrument constituting the fund. This includes disclosure related to the AIF’s investment strategy and objectives, risks, liquidity profile, valuation, fees and other key features. Core sections include:
Application
sets out which AIFMs and AIFs fall within the scope of the investor information requirements in FUND 3.2.
Prior disclosure of information to investors
describes the information that must be provided to investors before subscription, including how it is presented in the AIF’s constitutional or offering documents.
Additional information to be made available on securities financing transactions and total return swaps
explains the supplementary disclosures required where the AIF uses securities financing transactions or total return swaps.
Preparation of key information document in accordance with the PRIIPs regulation
outlines when a PRIIPs KID is required for AIFs made available to retail investors and how this sits alongside AIFMD disclosure obligations.
Periodic disclosure
summarises the ongoing information that must be provided to investors during the life of the AIF, including updates relating to risk, leverage and liquidity.
Subordinate measures
signposts technical and supplementary detail contained in the AIFMD Level 2 Regulation that informs the application of investor disclosure rules.
Prohibition on issue of bearer units
highlights how restrictions on issuing or maintaining bearer units affect fund documentation and investor communications.
