Kinetic Partners has unveiled its ‘AIFMD checklist’ for use by compliance and risk departments within both full-scope Alternative Investment fund managers (AIFMs) and small authorised/registered UK AIFMs.
The list has been designed to give firms an accurate picture of their progress along the road to meeting the AIFMD regulations.
Kinetic Partners, the global professional services firm, is working with a range of firms in the alternative investment market globally to help them achieve AIFMD compliance. The checklist has been developed from Kinetic Partner’s experience of real-life challenges faced by firms as they adapt and review their businesses in respect of AIFMD.
Andrew Shrimpton, Global Head of Regulatory compliance, at Kinetic Partners, says: “AIFMD is throwing up a host of challenges for market participants. While we hear a lot of discussion around the deadline pressure and requirements, very few have the practical experience and methodology to assist the industry throughout the change. We wanted to develop this checklist so firms both large and small can have a clear picture of where they are right now, where they need to get to and how to get there. The key starting point is establishing a clear roadmap.”
The checklist covers three key areas:
• Organisation structure review
• Operational processes review
• Review of reporting procedures for post-authorisation
Full-scope alternative investment managers must be able to show the FCA that they have adequate systems and controls in place to satisfy ongoing regulatory and reporting requirements. Key elements include constructing a business plan, reviewing existing investment management agreements, establishing a liquidity management system and preparing and distributing an annual AIFM report, among others. While the requirements for small AIFMs are less onerous, they too must evidence a regulatory business plan, establish regular assets under management (AUM) checks and comply with the FCA’s ongoing reporting requirements.