Financial Services Authority Discussion Paper on AIFMD - Langham Hall's response

Last week Langham Hall submitted a response paper to the FSA's discussion paper on "The implementation of the Alternative Investment Fund Managers Directive."

This paper was prepared after the ESMA guidance issued in November raised a number of points for discussion and actively sought representation from the industry. In addition to our own submission, Langham Hall has been actively working with trade organisations including the IPF, BPF and AREF in order to assist them with their own submissions. We have also had discussions with both FSA and HM Treasury.

Our understanding is that a fuller consultation process will continue in the coming months; in advance of draft regulations being issued. It is important that all stakeholders continue to put their views forward. In particular, we believe that the smaller fund managers, who may not be members of the main trade bodies, have yet to be fully represented in the consultation processes and the FSA are keen to speak with these participants.

Some of the key areas of focus we have identified include:

• The financial and regulatory impact on smaller fund managers and the resultant barriers to entry and reduced competition in the sector;
• The need for a light touch depositary function for real estate and private equity funds;
• The role of the Operator within the new regulatory environment; and
• The impact of gearing on the threshold test for real estate funds and how this creates an uneven playing field when compared to other alternative investments.

We would be delighted to hear your views on these points and other concerns you may have. Should you wish to discuss this further with us please contact Rob Short.