Complete applications: Q&A for full-scope AIFMs - Financial Conduct Authority

Complete applications and missing information for full-scope AIFMs

We set out below some Q&As with a view to assisting firms and their advisers with the application process for full-scope AIFMs.

 

Q&As

Q1: How is a complete application defined?

Answer:

An application for the Part 4A permission of managing an AIF is complete if it contains the information detailed in regulation 5(8) of the AIFM Regulations 2013 - this information is reflected in the application forms. If the required form and attachments are supplied by the applicant and are sufficient enough for us to make a decision, then the application will be considered complete.

Q2: Is it possible to submit draft documents in support of an application?

Answer:

We do not expect documents to be in draft form. They should comply with the Directive and be provided in the form in which you intend for execution. In the vast majority of cases this means that the documents will be signed. In the case of a Limited Partnership Agreement we will accept this in short form (although please note that if there is an amendment and restatement of the agreement this may give rise to a material change notification).

Q3: Does the FCA expect to see a signed depositary agreement as part of an application?

Answer:

It is not necessary to provide the contractual agreements themselves, rather details of those arrangements. Firms should be sufficiently advanced in the contracting process to be able to provide the details of a single depositary and to be confident that the arrangements agreed with the depositary will comply with AIFMD. When we receive an application, we may ask to see agreements in place with depositaries.

Q4: Is it possible to provide information to the FCA after the initial application is submitted?

Answer:

The Variation of Permissions form* section 8.4 (a-c) identifies three sets of information that do not need to be provided with the initial application. We do not need this information to determine your application, but it must be provided at least one month before the date on which the AIFM intends to begin managing an AIF. These are:

  1. AIF rules and Instruments of incorporation for all AIFs subject to the application
  2. Confirmation of contractual relationships with depositaries and delegates
  3. The disclosures required by FUND 3.2 (Investor information)

We strongly advise firms to supply all requested material with the initial submission. This will ensure that the application process runs as efficiently as possible and avoids potential delays.

*Please note that this answer also applies where the VoP form is being used for the purpose of a new authorisation.

Q5: Are there any consequences to not providing the information detailed above with an initial application?

Answer:

Applicant firms must consider the timing of the provision and the completeness of this information. If it is not received, at the latest, one month before the date on which it intends to start managing an AIF, and is not final and compliant with the requirements of AIFMD when it is provided, the firm will not be able to start managing the AIF.

Q6: Can my firm elect an authorisation date?

Answer:

Firms have a legal right to have their complete full-scope AIFM application determined within three months (or six months where the FCA considers it necessary due to the specific circumstances of the case). However, where a firm has specific requirements in relation to the timing of that authorisation, we will, where possible, accommodate the firm’s request.

Where the requested authorisation date is more than three months after the date a firm intends to submit a complete application, it is possible to request a deferral of determination beyond the normal three month statutory time limit. It is important that the application makes it clear a deferral is being requested and provides the reasons for this. Firms wishing to defer should provide the preferred authorisation date, along with the reasons for requesting it, in section 1.2 in the VoP form.

Q7: Does an applicant need to complete the schedule of AIFs provided on the AIFMD

Answer:

A completed schedule of AIFs is required for an application to be considered complete. The completed schedule of AIFs must be submitted in its original xls format in the section that covers the AIF schedule and firms are requested to use the relevant dropdown lists provided

Back to top >