MiFID2: expected amendments to fund and managed account documentation for UK AIFMs

We summarise the key amendments which we expect hedge fund managers (full scope UK AIFMs) will need to make to AIF and managed account documents in light of MiFID2.

MiFID 2 goes live on 03 January 2018, leaving UK hedge fund managers with just a short time to make their final preparations for MiFID2 compliance.

Whilst UK-headquartered hedge fund managers authorised as UK AIFMs are not themselves authorised as MiFID investment firms, certain elements of MiFID2 apply to AIFMs in relation to some or all of their business (both with respect to managing AIFs and also in relation to managing or advising mandates under MiFID “top up” permissions under Article 6(4) of AIFMD).

This note summarises:

  • the key AIF and managed account documents that we anticipate a hedge fund manager authorised as a full scope UK AIFM will be required to amend as a result of MiFID2, and
  • the key amendments that will be necessary in relation to each such document.

Other required MiFID2 documentation and policy updates, including for hedge fund managers authorised as MiFID investment firms are summarised in our separate note MiFID2 - Documents and Policies Update for Asset Managers available here.

This 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, and Simmons & Simmons can assist with that exercise. These expected amendments are evolving in light of ongoing guidance from ESMA and the FCA, and market practice is still developing. We therefore encourage you to check the online version of this note available here on a periodic basis for updates in the run up to the implementation of MiFID2.

Simmons & Simmons is preparing template language for certain updates required to the documents specified below.

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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.