Capita Financial Managers to offer US hedge fund AIFM service
Capita Financial Managers (Ireland) Limited has been granted an alternative investment fund manager (AIFM) licence by the Central Bank of Ireland.
The licence authorises Capita to take regulatory responsibility for the funds to which it acts as AIFM.
Capita will provide independent AIFM services to both EU and non-EU funds in the alternative investment market, so they are compliant with the Alternative Investment Fund Managers Directive (AIFMD).
AIFMD is an EU directive that came into force on 22 July 2013. It regulates EU and non-EU fund managers that market alternative investment funds to investors domiciled, or with a registered office in the EU.
Capita has invested significantly in both personnel and IT to meet the requirements of the directive, including the appointment of a new head of investment risk and the implementation of integrated performance and risk reporting.
Paul Nunan, managing director of Capita’s fund solution business in Ireland, says: “AIFMD requires fund managers to comply with a new and extensive set of regulations that affect transparency, the conduct of business, remuneration, leverage and reporting. When it was introduced, many US managers believed its cost, complexity and requirements would prove to be a bridge too far, but necessity is the mother of invention. Capita provides a ready-made solution for non-EU managers who desire access to European investors without the hurdles associated with developing an in-house solution.
“This allows fund managers to focus on managing their funds, while ensuring that aspects like governance and reporting are handled by specialists. As managers do not need to apply for a separate licence their products will get to market faster and benefit from the economies of scale. They will also be able to choose to use their own service providers (subject to appropriate due diligence) or use Capita’s fund solutions business and existing relationships.”
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