Fund Management
FCA Authorisation
Specialist regulatory support for Alternative Investment Fund Managers (AIFMs), UCITS operators, and fund management firms operating collective investment schemes.
Fund Management Regulatory Landscape
The fund management sector encompasses Alternative Investment Fund Managers (AIFMs) managing hedge funds, private equity, real estate funds, and other alternative strategies, as well as UCITS operators managing retail investment funds and collective investment schemes.
FCA regulation of fund managers operates under two principal frameworks: the Alternative Investment Fund Managers Directive (AIFMD) for alternative funds, and the UCITS Directive for retail funds. Both impose rigorous requirements on governance, risk management, valuation, and investor protection.
Successfully navigating authorisation requires demonstrating sophisticated investment management capabilities, robust risk and compliance frameworks, appropriate capital resources, and comprehensive operational infrastructure including fund administration and depositary arrangements.
Typical Services
- Alternative Investment Fund (AIF) management
- UCITS management company operations
- Hedge fund and long/short equity strategies
- Private equity and venture capital funds
- Real estate and property fund management
- Fund administration and depositary services
Required FCA Permissions
Fund management firms require permissions aligned with AIFMD and UCITS regulatory frameworks.
Managing an AIF
Managing Alternative Investment Funds including hedge funds, private equity, real estate, and other alternative strategies.
- AIFMD compliance
- Risk management
- Valuation procedures
- Investor reporting
Operating a UCITS
Operating UCITS funds that can be marketed across the EU, subject to strict investment restrictions and investor protections.
- UCITS eligibility rules
- Diversification limits
- Liquidity management
- Daily NAV calculation
Acting as a Depositary
Safekeeping fund assets, cash monitoring, and oversight of the fund manager's compliance with regulations.
- Asset segregation
- Reconciliation
- Oversight function
- Liability for losses
Establishing, Operating or Winding Up a CIS
Establishing, operating, or winding up collective investment schemes in the UK.
- Fund structuring
- Constitutional documents
- Regulatory approval
- Wind-down procedures
Managing Investments (Full-Scope AIFM)
Full-scope AIFM permission for managers with AUM exceeding €100m or €500m (unleveraged, closed-ended).
- Capital: €125k + 0.02% AUM
- Remuneration policies
- AIFM Directive compliance
- Regulatory reporting
Fund Administration
Providing administrative services including NAV calculation, registry, transfer agency, and reporting for funds.
- Operational infrastructure
- Fund accounting systems
- Registry and transfer agency
- Reporting capabilities
Key Regulatory Requirements
Fund managers must demonstrate compliance with AIFMD, UCITS, and FUND regulatory frameworks.
AIFMD (Alternative Investment Fund Managers Directive)
UCITS Directive Requirements
FUND Sourcebook Compliance
Governance and Oversight
Valuation and NAV Calculation
Capital Requirements and Financial Resources
Common Authorisation Challenges
Issues we frequently help fund management firms navigate during the FCA application process.
Appointing and contracting with an appropriate depositary is mandatory for AIFMs and UCITS. We help identify suitable depositaries, negotiate agreements, and document oversight arrangements that satisfy regulatory requirements.
Independent valuation is a critical AIFMD/UCITS requirement. We design comprehensive valuation policies, implement independent valuation functions, and establish procedures for fair value determination of complex or illiquid assets.
Calculating own funds requirements for full-scope AIFMs involves complex formulas based on AUM. We model capital needs, ensure sufficient resources are committed, and implement ongoing monitoring and reporting processes.
AIFMD permits delegation but requires robust oversight. We establish delegation frameworks, due diligence processes, service level agreements, and monitoring arrangements that maintain regulatory accountability.
AIFMD and UCITS require independent risk management functions. We help structure appropriate governance, design risk frameworks covering market, liquidity, and operational risks, and implement risk monitoring systems.
Fund managers face extensive reporting obligations including Annex IV returns, investor disclosures, and periodic reports. We implement reporting frameworks, select appropriate systems, and ensure timely, accurate submissions.
How We Support Fund Managers
Pre-Application
- Fund structure selection (AIF vs UCITS, domicile)
- AIFM vs sub-threshold analysis and permissions scoping
- Depositary selection and appointment support
- Administrator and service provider selection
- Capital requirements calculation and planning
- Senior Manager and governance structure design
Application Preparation
- Complete Connect application for AIFM/UCITS authorisation
- Programme of Operations and business plan
- Risk management and valuation frameworks
- Depositary and delegation agreements
- Compliance manuals covering AIFMD/UCITS/FUND
- Financial projections and capital adequacy modeling
Post-Submission
- FCA queries and technical clarifications
- Senior Manager interview preparation
- Fund authorisation applications (if required)
- Conditional approval requirements delivery
- Launch and operational readiness support
- Ongoing compliance advisory and regulatory reporting
Ready to Get Authorised?
Speak with our fund management regulatory specialists to discuss your AIFM or UCITS authorisation.