FMLC has noted a number of legal uncertainties in the various draft onshoring legislation relating to investment funds and their managers. In relation to the drafts for AIFMs and Collective Investment Schemes, FMLC has spotted issues with:
- references to other legislation – and conflict between pin-pointed dates on which terms take effect;
- the temporary recognition regimes, such as whether their operation requires actual activity before exit day or if entitlement to market suffices;
- delegation by AIFMs, such as whether arrangements in place before exit will be grandfathered;
- restrictions on promotion of sub-funds, including uncertainly over what sort of a KID will need to be produced; and
- transfer of functions to Treasury and whether the legislation will be too cumbersome for this effectively to work.