UK: Alternative Investment Fund Managers (Amendment) (EU Exit) Regulations 2019

The Alternative Investment Fund Managers (Amendment) (EU Exit) Regulations 2019 were made earlier this week and, when in force, will make significant changes to the Alternative Investment Fund Managers Regulations 2013. A copy of the Regulations, as made, is available here or here (pdf).

In very general terms, and quoting from the explanatory memorandum, the Regulations are designed to "...address deficiencies in retained EU law in relation to alternative investment fund managers arising from the withdrawal of the United Kingdom (UK) from the European Union (EU), ensuring the legislation continues to operate effectively at the point at which the UK leaves the EU .... This instrument relates to the Alternative Investment Fund Managers Directive 2011/61/EU (“AIFMD”), the regulatory framework in the EU for alternative investment funds managers...".

As made, the Regulations provide - in regulation 1(2) - that they come into force on exit day. However, regulation 1 has already been amended and is now in force. In amended form, regulation 1 now states that it and regulation 14 come into force on the day after the day on which the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 were made (they were made on February 19). It was regulation 58 of the latter Regulations that made this amendment to regulation 1. Regulation 14 of the AIFM (Amendment) (EU Exit) Regulations 2019 contains various transitional provisions, including temporary marketing permissions and associated powers for the Financial Conduct Authority.

For further information about the Regulations, see the accompanying explanatory memorandum (here, pdf) and impact assessment (here , pdf).