The government confirmed that UK alternative fund managers – such as private equity outfits and hedge funds – will be allowed to market their new funds as they had been doing from July 2013 onwards, after fears new EU rules would prevent them doing so.
The incoming Alternative Investment Fund Managers Directive (AIFMD), which needs to be transposed into UK law by July 2013, would have prevented companies from marketing funds in the months proceeding the statute change as they awaited AIFMD clearance.
However, the Treasury said yesterday funds could continue marketing during the year’s transitional phase.
Despite the rules needing to be transposed by July, they are not due to take effect for another year.
Investment Management Association director of authorised funds and tax Julie Patterson said: “Confirmation that existing European and third country alternative investment fund managers can market new funds during the one-year transitional period, before being authorised under the AIFMD, is great news for firms with pan-European or global businesses,”
The Treasury said in March’s budget it would work more closely with fund managers on regulation.