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 Financial Managers (Ireland) will provide independent AIFM services to both EU and non-EU funds in the alternative investment market, including hedge and private equity funds, 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. It requires investment in new ways of working, new company structures and time and resource devoted to managing regulatory change.
“Alternatively, fund managers can outsource to an independent AIFM, like Capita. This allows fund managers to focus on managing their funds, while ensuring that aspects like governance and reporting are handled by specialists. They can also benefit from economies of scale, a faster time to market - as a separate licence is not required - and extensive regulatory and market expertise. Managers will be able to choose to use their own service providers (subject to appropriate due diligence) or use Capita’s fund administration services and existing relationships.”
Capita Financial Managers Limited, subject to regulatory approval, will also act as AIFM in the UK, initially to over 30 UK non-UCITS (NURS) and qualified investor scheme (QIS) funds.