The Alternative Investment Fund Managers Regulations 2013

Supplementary provisions about AIFMsU.K.

This section has no associated Explanatory Memorandum

6.—(1) If a full-scope UK AIFM that is an external AIFM is unable to ensure compliance by an AIF it manages, or by another entity on the AIF's behalf, with an implementing provision for which the AIF is responsible, the AIFM must immediately inform—

(a)the FCA, F1...

F2(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

about the non-compliance.

(2) The FCA must require the AIFM to take steps to remedy the situation.

(3) If the non-compliance persists despite the steps mentioned in paragraph (2) being taken, the FCA must—

(a)require the AIFM to cease acting as manager of that AIF [F3; and]

(b)require the AIFM to stop marketing the AIF; F4...

F5(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) The FCA may use its powers under section 55J and 55L of the Act (variation or cancellation on initiative of regulator and imposition of requirement by the FCA) M1 to impose the requirements mentioned in paragraphs (2) and (3), but this paragraph does not limit the powers of the FCA.