FSMA 2000

Draft Alternative Investment Fund Manages Regulations 2013 Published

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On June 12, the Draft Investment Fund Managers Regulations 2013, together with an explanatory memorandum, were published. The Regulations come into force on July 22.  

The Regulations implement the majority of the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFMD).  The AIFMD aims to introduce a harmonised regulatory framework across the EU for EU-established managers (AIFMs) of alternative investment funds (AIFs).

The Regulations implement the AIFMD by amending the Financial Services and Markets Act 2000 (FSMA) and other relevant legislation (in the schedules to the Regulations) so that managing an AIF, which is required to be authorised under the AIFMD, is regulated under the FSMA.  Stand-alone provisions in the main body of the Regulations (and further amendments in the schedules) also apply requirements of the AIFMD both to persons regulated under that regime and to other persons who are not required to be authorised under the AIFMD but whom the AIFMD imposes requirements on.

The UK Government will review the Regulations and publish a report setting out the conclusions of the review by July 22.  Draft Investment Fund Managers Regulations 2013.  Explanatory Memorandum.

UK Prospectus Regulations 2013

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On May 14, the UK Prospectus Regulations 2013 and an accompanying explanatory memorandum were published.  These regulations amend sections of the Financial Services and Markets Act 2000 (FSMA) as part of the implementation of the Directive amending the Prospectus Directive and Transparency Directive (2010/73/EU).

The most significant amendment is to section 86(1A) of FSMA, which sets out the circumstances in which a further prospectus is not required in the context of a retail cascade.  Section 86(1A) of FSMA now provides that, in the case of certain non-equity securities issued in a continuous or repeated manner by credit institutions, this condition is satisfied if the securities have not ceased to be issued in a continuous or repeated manner.  The Prospectus Regulations 2013 will come into force on May 31.  Prospectus Regulations 2013.  Explanatory Memorandum.