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FUND 3.3 Annual report of an AIF

Application

FUND 3.3.1R

This section applies to a full-scope UK AIFM of:

  1. (1)

    a UK AIF;

  2. (2)

    an EEA AIF; and

  3. (3)

    a non-EEA AIF marketed in the UK.

Provision of an annual report

FUND 3.3.2R

An AIFM must, for each UK AIF and EEA AIF it manages and for each AIF it markets in the UK:

  1. (1)

    make an annual report available to investors for each financial year;

  2. (2)

    provide the annual report to investors on request; and

  3. (3)

    make the annual report available to the FCA and, in the case of an EEA AIF, to the competent authority of that AIF.

[Note: article 22(1) first paragraph and article 24(3)(a) of AIFMD]

FUND 3.3.3R

Subject to FUND 3.3.4R (2) and FUND 3.3.4AR4, an AIFM must make the annual report available, in line with FUND 3.3.2R (1), no later than six months after the end of the financial year.

[Note: article 22(1) first paragraph of AIFMD]

FUND 3.3.4R
  1. (1)

    Where the AIF is required to make an annual financial report public under DTR 4.1.3 R (Publication of annual financial reports) or an equivalent provision implementing article 4.1 of the Transparency Directive in the Home State of the AIF, only information referred to in FUND 3.3.5 R that is additional to the annual financial report needs to be provided to investors on request, either separately or as an additional part of the annual financial report.

  2. (2)

    Where additional information in (1) is provided as an addition to the annual financial report, that report must be made public no later than four months following the end of the financial year, under DTR 4.1.3 R (Publication of annual financial reports) or an equivalent provision implementing article 4.1 of the Transparency Directive in the Home State of the AIF.

    [Note: second paragraph, article 22(1) of AIFMD]

FUND 3.3.4AR
FUND 3.3.4BG

4A full-scope UK AIFM of a non-UCITS retail scheme is required to make available and publish its annual report within four months after the end of each annual accounting period (see COLL 4.5.14R (Publication and availability of annual and half-yearly long report)).

Contents of the annual report

FUND 3.3.5R

The annual report must contain:

  1. (1)

    a balance sheet or a statement of assets and liabilities;

  2. (2)

    an income and expenditure account for the financial year;

  3. (3)

    a report on the activities of the financial year;

  4. (4)

    any material changes in the information required to be made available to investors under FUND 3.2.2 R (Prior disclosure of information to investors) during the financial year covered by the report;

  5. (5)
    1. (a)

      the total amount of remuneration paid by the AIFM to its staff for the financial year, split into fixed and variable remuneration, including, where relevant, any carried interest paid by the AIF; and

    2. (b)

      the number of beneficiaries; and

  6. (6)

    the aggregate amount of remuneration broken down by senior management and members of staff2 of the AIFM whose actions have a material impact on the risk profile of the AIF.2

    [Note: article 22(2) of AIFMD]

FUND 3.3.5AG

1The FCA has provided additional guidance on the disclosure requirements relating to remuneration paid by an AIFM to its staff. The guidance can be found at: [http://www.fca.org.uk/your-fca/documents/finalised-guidance/fg14-02]

Accounting information in the annual report

FUND 3.3.6R

The accounting information given in the annual report must be:

  1. (1)

    prepared in accordance with the accounting standards of the Home State of the AIF (or, for a non-EEA AIF, the accounting standards of the third country where it is established) and with the accounting rules set out in the AIF's instrument constituting the fund; and

  2. (2)

    audited by one or more persons empowered by law to audit accounts under the Audit Directive (or for a non-EEA AIF, under international auditing standards in force in the country where the non-EEA AIF is established).

[Note: article 22(3) of AIFMD]

FUND 3.3.7R

The auditor's report, including any qualifications, must be reproduced in full in the annual report.

[Note: second paragraph article 22(3) of AIFMD]

Timing of first annual report2

FUND 3.3.7AR

2An AIFM must comply with the provisions in this section in relation to the first financial year end date of the AIF following the AIFM's authorisation as an AIFM.

Information to be included in annual reports on securities financing transactions and total return swaps

FUND 3.3.7BG
  1. (1)

    3The Securities Financing Transactions Regulation sets out the additional information which a full-scope UK AIFM of an AIF must include in the AIF’s annual report.

  2. (2)

    COLL 4.5.8ABEU and COLL 4.5.8ACEU copy out the relevant provisions of that regulation.

  3. (3)

    A full-scope UK AIFM of an AIF that has not used securities financing transactions or total return swaps during the relevant period is not required to include the information in COLL 4.5.8ACEU in the AIF’s annual report.

Subordinate measures

FUND 3.3.8G

Articles 103 to 107 of the AIFMD level 2 regulation provide detailed rules supplementing this section.