The FCA has published a direction that it has sent to operators of funds recognised under section 272 of the Financial Services and Markets Act 2000 (FSMA) relating to the regular provision of information. Under section 277A of FSMA, the FCA has directed the operators to complete and send it an annual compliance certificate relating to the recognised funds under management. Each operator must certify that during the most recent financial year:

  • it has taken reasonable steps to inform itself of any changes to the regulatory requirements for the relevant type of comparable authorised scheme (as defined in section 272(6) of FSMA) taking effect during this period; and
  • it has considered such changes, together with any changes to the scheme that have occurred during this period, and considers that these changes do not adversely affect the scheme’s ability to satisfy the requirements referred to in section 272(1)(d) of FSMA.

The FCA explains on a related webpage that this certification would prove that the fund continues to comply with equivalent requirements to UK authorised funds, and gives adequate protection to UK investors. It also ensures that, if the FCA amends its rules, the recognised fund will maintain equivalence.

The 277A certificate must be sent to the FCA no later than one month following publication of the annual report and accounts of the fund or, if publication is delayed, the last day on which publication was due (the due date). The operator must initially comply with the direction for any financial year for which the due date falls after 31 August 2014.

View Direction under s. 277A FSMA (‘Regular provision of information relating to compliance with requirements for recognition’), 25 June 2014

View AIFMD latest news, 25 June 2014