The Alternative Investment Fund Managers Regulations 2013 (UK AIFMD) is the regulatory framework that governs UK Alternative Investment Fund Managers.
1. History of UK AIFMD
🌐 2008: Global financial crisis prompted calls for tighter oversight.
🇪🇺 2011: EU AIFMD adopted in response to the financial crisis.
🇬🇧 2013: UK AIFMD adopted as domestic implementation of EU AIFMD.
2. Scope
Management, administration, and marketing of alternative investment funds (AIFs).
3. Aims
Prevent market instability and the build-up of systemic risk in the financial system.
Improve investor protection via depositary standards, investor disclosure, and mandatory reporting.
4. Requirements
1. Authorisation/Registration: Fund managers classified by thresholds, with option to opt into full authorisation.
2. Conduct of business: Fair treatment of investors, conflict of interest rules, remuneration, risk management, valuation, disclosure.
3. Regulatory capital: Initial capital, own funds, and professional liability insurance (or additional own funds).
4. Safekeeping of investments: Mandatory depositaries/custodians.
5. Delegation: Controls over delegation of certain tasks, including portfolio & risk management.
6. Leverage: Rules on the use of leverage for all AIFs.