Part 3 – Regulatory reporting
For any Alternative Investment Fund Manager (AIFM), the main factors that define the success of their business will be the amount of capital they are able to raise and the performance of the funds that they manage.
Part 3 – Regulatory reporting
For any Alternative Investment Fund Manager (AIFM), the main factors that define the success of their business will be the amount of capital they are able to raise and the performance of the funds that they manage.
Administrative matters are quite rightly a secondary concern, but it is still important these are dealt with competently as failure to do so may result in the AIFM incurring fines and penalties, breaching its regulatory requirements with the Financial Conduct Authority (FCA) or paying too much tax.
In this short series of articles, Blick Rothenberg Partner Peter Scott summarises the various filing requirements of a new UK-based AIFM and other issues it may face.
We hope these insights help you to manage your business in a proficient manner which frees up as much time as possible for you to concentrate on improving the performance of the funds you manage.
Quarterly filing requirements
All AIFMs must file regular data items with the FCA on a quarterly basis. These data items provide the FCA with up-to-date information on your business and include:
A latest balance sheet
– A latest profit and loss account
– A data item summarising the AIFM’s capital requirements and whether it has sufficient regulatory capital to meet these
– A data item summarising the MiFID activities undertaken by the business (there are additional reporting requirements if MiFID AUM is in excess of £1.2bn)
– Details on the level of client assets and client money held by the AIFM
– Details on the volume of trades undertaken by the AIFM
Most of the data items will be fairly self-explanatory and easy to fill in but a few are complicated and therefore the AIFM may require help from their advisors in filling these out.
The FCA have an online system called RegData which is used for the filing of returns. When an AIFM is authorised by the FCA it is automatically registered for RegData and issued with log-on details. The AIFM can then log on online whenever it needs to submit a data item and fill in the required information.
Quarterly data items must be filed with the FCA within 20 working days of the quarter-end.
Annual filing requirements
The AIFM’s annual audited financial statements must be filed with the FCA within 80 working days of the accounting reference date. This is also filed using the RegData system.
In addition to this the auditors must submit an annual report to the FCA confirming that the AIFM has complied with the rules on client assets (or that it hasn’t held client assets). This must be filed within four months of the accounting reference date.
Key dates and deadlines
How Blick Rothenberg can help
We hope that you have found this article helpful in giving you an understanding of some of the general issues and requirements you will face in setting up an AIFM. o read our previous articles in the series click here.
While this series of articles focuses on general issues applicable to most UK AIFMs there may be some issues specific to your circumstances which also need to be considered. If you would like to discuss any of the content of this article further, please contact Peter Scott directly via [email protected].
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