The FCA has updated its web page on the Alternative Investment Fund Managers Directive (AIFMD) which includes a section on the calculation of additional own funds.
The FCA is currently considering its interpretation of the definition of ‘funds under management’ for the purposes of article 9(3) of the AIFMD due to questions raised from a number of firms. The definition encompasses the amount of additional own funds a manager must hold. The FCA is concerned that its current requirement in chapter 11 of the Interim Prudential sourcebook for investment business (IPRU(INV) 11) can lead to disproportionate outcomes.
The FCA will consult on this in a Quarterly Consultation Paper later in 2014. The proposed change will allow for derivatives to be valued at their market value rather than requiring them to be converted to their underlying positions when calculating the value of portfolios.
View AIFMD latest news, 14 February 2014