Overview
Managing an Authorised AIF is a permission that enables a firm to manage alternative investment funds (AIFs) that are authorised by the FCA, which include Non-UCITS Retail Schemes (NURS), Long-Term Asset Funds (LTAF) and Qualified Investor Schemes (QIS). [1,2] This permission is distinguished from the Managing an Unauthorised AIF permission variant based on the authorisation type of the fund being managed. Both permissions represent the Managing an AIF regulated activity, which covers the portfolio management and risk management of alternative investment funds (AIFs).
Unlike unauthorised funds that are typically marketed only to professional, institutional, or otherwise qualified investors, authorised funds may be marketed to retail investors depending on the fund type and the scope of FCA authorisation. [3,4] Both the manager and the fund are subject to requirements under the UK AIFM regime and FCA rules, including the Collective Investment Schemes sourcebook (COLL), covering conduct, depositary arrangements, risk management, governance and regulatory reporting, among other requirements. [5,6]
At the firm level, alternative investment fund manager (AIFM) either hold authorised status (Full-Scope or Small Authorised) or hold registered status (Small Registered).[7] These permissions only apply to authorised AIFMs because registered AIFMs operate outside the Part 4A permission regime and are instead supervised under a separate registration regime.[8]
As at Q4 2025, there are 1,284 UK AIFMs in total. 1,151 of them are authorised, while the remaining 133 are registered. Of the 1,151 authorised firms, 28 hold only the Managing an Authorised AIF permission (2.4%), 1,051 hold only the Managing an Unauthorised AIF permission (91.3%), and 72 hold both (6.3%).
| Permission Combination |
AIFM Count |
| Managing an Authorised AIF (only) |
28 |
| Managing an Unauthorised AIF (only) |
1,051 |
| Managing both Authorised and Unauthorised AIFs |
72 |
| Total authorised AIFMs |
1,151 |
Non-UCITS Retail Schemes (NURS)
Non-UCITS Retail Schemes (NURS) are FCA-authorised collective investment schemes that are alternative investment funds but are neither UCITS schemes nor Qualified Investor Schemes. They have fewer restrictions on their investment powers than UK UCITS schemes and can be marketed to retail investors in the UK.[11,12]
The NURS regime allows investment in structures such as property authorised investment funds (PAIFs) that are designed to hold immovables such as commercial property within the authorised-fund framework. Within the limits set by FCA rules on eligible assets, concentration and borrowing, NURS can hold a range of assets and may invest in less liquid asset classes in line with the fund’s investment objective.[13,14]
A NURS is treated as an authorised AIF under the UK AIFM regime. A firm that manages a NURS is therefore managing an authorised AIF and is required to hold the FCA Part 4A permission “Managing an Authorised AIF”.[15]
Long-Term Asset Funds (LTAF)
Long-Term Asset Funds (LTAF) are FCA-authorised open-ended collective investment schemes within the UK authorised-fund regime, categorised as alternative investment funds and established for investment in long-term illiquid assets. HMRC and FCA materials describe LTAFs as authorised investment funds whose units are available primarily to professional investors, with access for certain other categories of investor in line with FCA distribution rules.[11,16,19]
Under FCA rules, the investment strategy of an LTAF is to invest mainly in long-term illiquid assets or in other funds that invest in such assets. FCA guidance expects LTAFs to invest more than 50% of the value of the scheme property in unlisted securities and other long-term assets, such as interests in immovables or other collective investment schemes investing in those assets.[20, 21]
The FCA rules introduce a mandatory minimum notice period of at least 90 days for redemptions and prohibit LTAFs from offering redemptions more frequently than monthly, with longer notice periods or less frequent dealing permitted where consistent with the fund’s strategy and liquidity profile.[22]
For UK regulatory and tax purposes, an LTAF is treated as an authorised AIF. A firm that manages an LTAF is required to be a full-scope UK AIFM (or equivalent authorised AIFM) holding the Part 4A permission “Managing an Authorised AIF” and is subject to the UK AIFM regime in addition to the specific FCA rules that apply to LTAFs.[15, 23]
Qualified Investor Schemes (QIS)
Qualified Investor Schemes (QIS) are FCA-authorised collective investment schemes that are alternative investment funds open only to “qualified investors”. They have wider investment and borrowing powers than UK UCITS funds or NURS.[11,16]
Qualified investors include professional investors such as institutional investors (for example pension funds and charities) and certain categories of retail investor that meet HMRC and FCA criteria for qualified or sophisticated investors. Units in a QIS may be promoted only to professional clients and those categories of retail client that meet the FCA’s eligibility criteria for investment in non-mainstream pooled investments.[16,17]
QIS have the widest authorised-fund investment powers in the UK regime and can invest in a wide range of assets with relatively few category-based restrictions, subject principally to requirements on spread of risk and the fund’s stated investment objectives. QIS may invest in assets such as infrastructure, real estate, private equity, private debt and other financial instruments within this framework.[13,18]
See Also
Dataset of UK AIFMs