FUND 10.4 AIFM third country management

This section applies to a full-scope UK AIFM of a non-UK AIF that is not marketed in the UK to UK investors.

A full-scope UK AIFM may manage a non-UK AIF subject to the satisfaction of certain conditions. If the AIF is not marketed, these conditions are that:

1. (1)

   the AIFM complies with the full requirements of FUND, other rules in the Handbook which, when made, implemented AIFMD, the AIFMD level 2 regulation, the AIFMD UK regulation in respect of that AIF, except FUND 3.3 (Annual reporting) and FUND 3.11 (Depositaries), the AIFMD BTS and any other binding technical standards made in connection with the UK AIFM regime; and

2. (2)

   (in accordance with regulation 33 of the AIFMD UK regulation) appropriate cooperation arrangements are in place between the FCA and the supervisory authorities of the country where the non-UK AIF is established in order to ensure an efficient exchange of information that allows FCA to carry out its duties in accordance with FUND, other rules in the Handbook which, when made, implemented AIFMD, the AIFMD level 2 regulation and the UK AIFMD regulation.

As a result, a full-scope UK AIFM of a non-UK AIF that is not marketed is required to comply with:

1. (1)

   all of FUND 3 with the exception of FUND 3.3 (Annual report of an AIF), FUND 3.11 (Depositaries) and FUND 3.12 (Marketing in the UK); and

2. (2)

   such other provisions of the FCA Handbook as are applicable to a full-scope UK AIFM.

If a full-scope UK AIFM wishes to market in the UK a  non-UK AIF that it manages, the AIFM must comply with the relevant requirements, as explained in FUND 10.5.3 G to FUND 10.5.5 G (Marketing of third country AIFs managed by full-scope UK AIFMs).