MiFID2: expected amendments to fund documentation for UK authorised funds

We summarise the key amendments which we expect UK authorised fund managers (including UK UCITS management companies) will need to make to fund documentation in light of MiFID2.

MiFID2 comes into effect on 03 January 2018, bringing a significant increase in the scope of applicable regulatory obligations, many of which impact on legal agreements and compliance policies.

The Financial Conduct Authority (FCA) has goldplated certain requirements of MiFID2 so that it directly applies to UK authorised fund managers (AFMs) such as UK UCITS management companies. Also, the relationships that AFMs have with other entities that are MiFID firms (for example, group companies and/or third party portfolio management companies to whom the AFM delegates) means that AFMs are impacted by certain MiFID requirements.

In addition to the operation and management of UCITS and Alternative Investment Funds (AIFs), some AFMs provide portfolio management and other MiFID-type services to other client types (having obtained MiFID “top-up” permissions under Article 6(3) of the UCITS Directive).

Simmons & Simmons has produced this briefing note which summarises: 

  • the key UK authorised fund documents that we anticipate a UK AFM will be required to amend as a result of MiFID2, and 
  • the key amendments that will be necessary in relation to each document.

The briefing note contains an indicative list of expected amendments to documentation only - each firm will need to undertake an exercise to determine whether and how a particular agreement or policy is impacted by MiFID2. Simmons & Simmons can assist with that exercise.

The expected amendments are evolving as the European Securities and Markets Authority (ESMA) and the FCA publish further guidance and market practice is still developing - therefore, please check this note on a periodic basis for future updates.

Download the briefing note

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.