FUND 10.1 Application and purpose

1. (1)

   2This chapter applies to the following types of firm in relation to the activities in (2):

   1. (a)

      a full-scope UK AIFM;

   2. (b)

      a full-scope EEA AIFM;

   3. (c)

      a small non-EEA AIFM; and

   4. (d)

      an above-threshold non-EEA AIFM.

2. (2)

   The activities to which this chapter relates are the management and marketing on a cross-border basis, into or from the UK of:

   1. (a)

      a UK AIF;

   2. (b)

      an EEA AIF; and

   3. (c)

      a non-EEA AIF.

The purpose of this chapter is to provide guidance on the requirements that apply to the types of firm set out in FUND 10.1.1 G when operating on a cross-border basis into or from the UK.

An AIFM operates on a cross-border basis when it manages or markets an AIF in an EEA State other than the state in which it has its registered office (which may include, in certain cases, a state which is a non-EEA State).

1. (1)

   AIFMD allows certain types of AIFM to operate on a cross-border basis using a passport. There are two types of passport that are provided for in AIFMD:

   1. (a)

      a management passport, which allows an AIFM to establish a branch in, or provide cross-border services into, another EEA State to manage an AIF; and

   2. (b)

      a marketing passport, which allows an AIFM to provide cross-border services into another EEA State to market an AIF to investors that are professional clients.

2. (2)

   The following types of AIFM are allowed to operate on a cross-border basis using the management and marketing passport:

   1. (a)

      a full-scope UK AIFM of:

      1. (i)

         a UK AIF; and

      2. (ii)

         an EEA AIF; and

   2. (b)

      a full-scope EEA AIFM of:

      1. (i)

         a UK AIF; and

      2. (ii)

         an EEA AIF.

1. (1)

   AIFMD also contains specific provisions for third country AIFs and AIFMs (ie, in relation to non-EEA AIFs and non-EEA AIFMs) and the marketing of a UK AIF or an EEA AIF that is a feeder AIF, the master AIF of which is managed by a non-EEA AIFM or is a non-EEA AIF.

2. (2)

   In line with these provisions, the following types of AIFM are allowed to manage a non-EEA AIF from an EEA State:

   1. (a)

      a full-scope UK AIFM; and

   2. (b)

      a full-scope EEA AIFM.

3. (3)

   In addition, EEA States may allow the marketing by the following types of AIFM in their territory only:

   1. (a)

      a full-scope UK AIFM of:

      1. (i)

         a UK AIF or an EEA AIF that is a feeder AIF, the master AIF of which is managed by a non-EEA AIFM or is a non-EEA AIF and;

      2. (ii)

         a non-EEA AIF;

   2. (b)

      a full-scope EEA AIFM of:

      1. (i)

         a UK AIF or an EEA AIF that is a feeder AIF, the master AIF of which is managed by a non-EEA AIFM or is a non-EEA AIF; and

      2. (ii)

         a non-EEA AIF; and

   3. (c)

      a non-EEA AIFM of:

      1. (i)

         a UK AIF;

      2. (ii)

         an EEA AIF; and

      3. (iii)

         a non-EEA AIF.