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.

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.

Although UK-headquartered hedge fund managers authorised as UK Alternative Investment Fund Managers (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 (with respect to both managing AIFs and managing or advising mandates under MiFID “top up” permissions under Article 6(4) of Alternative Investment Fund Managers Directive (AIFMD)).

This briefing note summarises:

  • the key AIF and managed account documents that we expect hedge fund managers authorised as full scope UK AIFMs to need to amend in light of MiFID2, and
  • the key amendments that will be necessary in respect of 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 European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (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.