This section sets out:
- What would this licence allow you to do?
- Capital Requirements
- What do you need to submit?
- Alternative Investment Fund Managers (AIFMs)
The Alternative Investment Fund Managers Directive 2011/61/EU (AIFMD) was transposed in Gibraltar legislation via the Financial Services (Alternative Investment Fund Managers) Regulations 2013. AIFMD does not directly regulate the operations of Alternative Investment Funds (AIFs) but instead regulates the managers of the AIFs, i.e. the AIFMs. It is therefore prudent to determine who the AIFM is for the purposes of the AIFMD as some AIFs may themselves be considered AIFMs.
What would this licence allow you to do?
This licence allows an AIFM to manage portfolios of AIFs, whose assets under management do not exceed the de-minimus threshold and which does not elect to opt-in to the full authorisation process under the AIFMD.
Small Scheme Managers are required, on an ongoing basis, to self-assess the level of financial resources required to be able to meet its liabilities and ensure an orderly wind-down, subject to a minimum of £15,000.
What do you need to submit?
An application pack is required to be submitted together with all the relevant documents, it is not possible to consider an application if there are any outstanding documents.
The application pack must consist of:
- Application Form
- Business Plan
- Financial projections for the next 3 years
- Profit and loss account
- Balance sheet
- Returns (these need to be on a quarterly basis for the first year and then annually for the following 2 years)
- Authorised AIFM (B2) Reporting Template
- Individual Questionnaires (for each individual holding a notifiable position)
- Body Corporate Questionnaires (for each entity holding a notifiable position)
- Any other document that the GFSC considers to be neccesary as part of the application
An AIFM applying for authorisation shall provide the following information relating to the AIFM to the GFSC:
- Information on the persons conducting the business
- AIFM's shareholders
- Organisational structure
- Information on the AIFs it intends to manage:
- The investment strategies including the types of underlying funds, AIFM’s policy on the use of leverage and the risk profiles
- The rules or instruments of incorporation of each AIF
- Arrangements made for the appointment of the depositary for each AIF
- Business Plan
The business plan should clearly and comprehensively set out:
- The firm’s proposed activity and how it will be conducted
- The resources that will be made available and the systems that the applicant intends to employ
- How clients will be attracted
- What arrangements will be put in place to safeguard client monies and/or assets
- How records will be maintained
- How, and by whom, any significant decisions will be made
- How the firm complies with the Anti-Money Laundering requirements
- The level and nature of fees to be charged to the firm’s clients
If the applicant forms part of a larger group, details should also be provided of the activities of the group and a description of their structure.
The GFSC will also be seeking evidence that the firm has considered the risk, compliance and operational issues associated with the proposed activities, as well as evidence that these have been documented and implemented.
Firms should consider the relevant AIFMD requirements in their entirety prior to submitting an application. The GFSC Information Pages may also be of assistance as they set out the requirements specific to the relevant area.