The FCA has published new tax transparent fund structures under the alternative investment fund manager’s directive (AIFMD) guidance, to align the UK asset management industry with the rest of Europe.
The AIFMD has introduced two legal forms of collective investment schemes – the co-ownership scheme and limited partnership scheme to encourage greater investment in UK funds by aligning the country’s regulatory framework in a more competitive way to the rest of Europe.
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The fund structures do not incur tax liability and are available in other parts of the European Union.
In its latest 196-page policy statement, PS13/5 Implementation of the AIFMD, and its new rules for fund managers, the FCA reported that it was upholding the EU’s directive to support its objectives of protecting and enhancing the integrity of the UK financial system and securing an appropriate degree of protection for consumers.
According to the FCA, these new rules will support the treasury’s initiative to invest in UK funds by offering investors, including those who may be tax-exempt such as charities and pension funds, a more tax-efficient vehicle."
The FCA said: "The publication of the policy statement (PS) now gives UK asset management firms more certainty about how they will be regulated and how they can take advantage of the opportunities AIFMD creates."
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By GlobalDataThe PS said: "There is likely to be a considerable overlap between marketing and financial promotion, and in the case of marketing to retail clients, this can only be done if a financial promotion can be made to that investor, but the two concepts are not the same."
Chris Woolard, FCA director of policy, risk and research, said: "The implementation of these changes is a crucial development for the asset management industry and consumers.
"By publishing our rules now and implementing the directive on time, we are delivering that certainty and increasing cross-border opportunities for UK firms," Woolard added.
