FCA decision provides clarity on impact of AIFMD

FCA decision provides clarity on impact of AIFMD

Is the Financial Conduct Authority’s (FCA) rejection of formal EU guidance on financial regulations in favour of alternatives more than just a political move? Nicola Higgs of Ashurst says the FCA’s decision is welcomed by UK-based financial services firms who now have further clarity on the potential impact of the Alternative Investment Fund Managers Directive (AIFMD).


According to a recent report in the Financial Times, the FCA has rejected formal EU guidance on financial regulations in a move analysts claim is a sign of the government’s hardened stance towards Europe. The FCA’s interpretation of two financial rules eases pressure on bankers and brokers, helping to minimise the impact of EU regulation on the City.

What does this decision tell us about the FCA’s relationship with European authorities?

It demonstrates that the FCA is not afraid to publicly break ranks from the European Securities and Markets Authority (ESMA) where it deems it important that the UK market has clarity over the implementation of EU rules. Interestingly, the FCA’s position has caused other European regulators to follow suit since they do not want institutions in their territories to be disadvantaged by the often stricter/uncertain position taken at European level.

What aspects of AIFMD have the FCA put their foot down about?

The FCA has confirmed that special purpose vehicles issuing debt securiti

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