Retained EU Law SI 2013/231 United Kingdom

Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (Text with EEA relevance)

Read it on legislation.gov.uk (opens in a new tab)
Status
In Force
Penalty ceiling
Regulated

Does it bind you?

Business-side roles with duties under this instrument.

Financial Services Firm63 Any Person4 Employer1

Other Acts binding the same actors

If a role above is yours, these are the other instruments that most often bind it.

Financial Services Firm — also bound by 167 other Acts
Any Person — also bound by 2340 other Acts
Employer — also bound by 682 other Acts
TULRCA 1992 72 duties

What it requires

Regulations creating concrete business duties or carrying penalties, grouped as the instrument is structured. Titles link to the source text — blue means you’re leaving for legislation.gov.uk.

s.art003 Ongoing monitoring of assets under management Regulated
  • Monitor total value of assets under management on an ongoing basisFinancial Services Firm
s.art004 Occasional breach of the threshold Regulated
  • Notify FCA if assets exceed threshold and are not temporaryFinancial Services Firm
s.art005 Information to be provided as part of registration Regulated
  • Provide registration information to the FCAFinancial Services Firm
s.art006 General provisions on the calculation of leverage Regulated
  • Calculate and document your fund's leverage using gross and commitment methodsFinancial Services Firm
s.art007 Gross method for calculating the exposure of the AIF Regulated
  • Calculate AIF exposure using the gross methodFinancial Services Firm
s.art008 Commitment method for calculating the exposure of an AIF Regulated
  • Calculate AIF exposure using the commitment methodFinancial Services Firm
s.art009 Methods of increasing the exposure of an AIF Regulated
  • Use prescribed calculation methods when working out your AIF's exposureFinancial Services Firm
s.art010 Conversion methodologies for derivative instruments Regulated
  • Use conversion methodologies in Annex II for derivative instrumentsFinancial Services Firm
s.art011 Duration netting rules Regulated
  • Apply duration netting rules correctly when calculating AIF exposureFinancial Services Firm
s.art013 Qualitative requirements addressing professional liability risks Regulated
  • Implement operational risk management and record lossesFinancial Services Firm
s.art015 Professional indemnity insurance Regulated
  • Take out and maintain professional indemnity insurance meeting regulatory standardsFinancial Services Firm
s.art017 Duty to act in the best interests of the AIF or the investors in the AIF and the integrity of the market Regulated
  • Implement policies to prevent market malpractice and avoid undue costsFinancial Services Firm
s.art018 Due diligence Regulated
  • Apply high-standard due diligence for every investmentFinancial Services Firm
s.art019 Due diligence when investing in assets of limited liquidity Regulated
  • Perform due diligence when investing in illiquid assets after a negotiation phaseFinancial Services Firm
s.art020 Due diligence in the selection and appointment of counterparties and prime brokers Regulated
  • Exercise due diligence when selecting and appointing counterparties and prime brokersFinancial Services Firm
s.art022 Resources Regulated
  • Employ enough staff with the right skills for the businessFinancial Services Firm
s.art023 Fair treatment of investors in the AIF Regulated
  • Ensure fair treatment of all investors in the fundFinancial Services Firm
s.art025 Effective employment of resources and procedures — handling of orders Regulated
  • Establish fair and prompt order execution procedures for AIFFinancial Services Firm
s.art026 Reporting obligations in respect of execution of subscription and redemption orders Regulated
  • Report subscription and redemption order details to investors promptlyFinancial Services Firm
s.art027 Execution of decisions to deal on behalf of the managed AIF Regulated
  • Obtain best possible results when executing trades for your AIFFinancial Services Firm
s.art028 Placing orders to deal on behalf of AIFs with other entities for execution Regulated
  • Obtain best possible execution for fund ordersFinancial Services Firm
s.art029 Aggregation and allocation of trading orders Regulated
  • Establish and follow fair order aggregation and allocation policyFinancial Services Firm
s.art030 Types of conflicts of interest Regulated
  • Identify and manage conflicts of interest that could harm your fund or investorsFinancial Services Firm
s.art031 Conflicts of interest policy Regulated
  • Establish and implement a written conflicts of interest policyFinancial Services Firm
s.art032 Conflicts of interest related to the redemption of investments Regulated
  • Identify, manage and monitor conflicts of interest in open-ended AIFsFinancial Services Firm
s.art033 Procedures and measures preventing or managing conflicts of interest Regulated
  • Put in place measures to prevent or manage conflicts of interestFinancial Services Firm
s.art035 Monitoring conflicts of interest Regulated
  • Record and report activities where conflicts of interest have or may ariseFinancial Services Firm
s.art037 Strategies for the exercise of voting rights Regulated
  • Develop voting rights strategies for AIF portfoliosFinancial Services Firm
s.art040 Risk management policy Regulated
  • Establish and maintain a documented risk management policyFinancial Services Firm
s.art041 Assessment, monitoring and review of the risk management systems Regulated
  • Assess, monitor and review risk management systems annually and notify FCA of material changesFinancial Services Firm
s.art044 Risk limits Regulated
  • Set and document risk limits for each fund you manageFinancial Services Firm
s.art045 Risk measurement and management Regulated
  • Continuously identify, measure, manage and monitor all risks to your AIFsFinancial Services Firm
s.art046 Liquidity management system and procedures Regulated
  • Maintain and demonstrate liquidity management system for each AIFFinancial Services Firm
s.art048 Liquidity management limits and stress tests Regulated
  • Manage liquidity risks and conduct stress tests on your fundsFinancial Services Firm
s.art049 Alignment of investment strategy, liquidity profile and redemption policy Regulated
  • Ensure alignment of investment strategy, liquidity and redemption policyFinancial Services Firm
s.art051 Requirements for retained interest Regulated
  • Verify 5% risk retention before securitisation exposureFinancial Services Firm
s.art052 Qualitative requirements concerning sponsors and originators Regulated
  • Verify sponsor and originator meet securitisation credit risk standards before exposureFinancial Services Firm
s.art053 Qualitative requirements concerning AIFMs exposed to securitisations Regulated
  • Conduct due diligence and maintain risk management for securitisation investmentsFinancial Services Firm
s.art054 Corrective action Regulated
  • Take corrective action if securitisation retained interest requirements failFinancial Services Firm
s.art057 General requirements Regulated
  • Set up and run proper governance, controls, and record-keeping for your investment businessFinancial Services Firm
s.art058 Electronic data processing Regulated
  • Set up secure electronic systems to record all portfolio transactions and ordersFinancial Services Firm
s.art059 Accounting procedures Regulated
  • Maintain accounting records and policies for investor protection and accurate NAVFinancial Services Firm
s.art061 Permanent compliance function Regulated
  • Establish and maintain a permanent compliance functionFinancial Services Firm
s.art062 Permanent internal audit function Regulated
  • Establish and maintain a permanent internal audit functionFinancial Services Firm
s.art064 Recording of portfolio transactions Regulated
  • Record all portfolio transactions for each AIF you manageFinancial Services Firm
s.art066 Recordkeeping requirements Regulated
  • Retain records for at least five years and ensure FCA accessFinancial Services Firm
s.art067 Policies and procedures for the valuation of the assets of the AIF Regulated
  • Maintain written valuation policies and procedures for each AIFFinancial Services Firm
s.art068 Use of models to value assets Regulated
  • Document, validate and approve valuation models used for AIF assetsFinancial Services Firm
s.art069 Consistent application of valuation policies and procedures Regulated
  • Apply valuation policies and procedures consistently across your AIFsFinancial Services Firm
s.art071 Review of individual values of assets Regulated
  • Ensure fair and appropriate valuation of all AIF assetsFinancial Services Firm
s.art072 Calculation of the net asset value per unit or share Regulated
  • Calculate and document net asset value per unit/share for each AIFFinancial Services Firm
s.art076 Objective reasons for delegation Regulated
  • Provide evidence of objective reasons for delegation to FCAFinancial Services Firm
s.art080 Conflicts of interest Regulated
  • Manage conflicts of interest when delegating portfolio or risk managementFinancial Services Firm
s.art085 Cash monitoring — general requirements Regulated
  • Provide depositary with full cash account information from day oneFinancial Services Firm
s.art086 Monitoring of the AIF’s cash flows Regulated
  • Your depositary must monitor all cash flows of your AIF dailyAny Person
s.art087 Duties regarding subscriptions Regulated
  • Provide depositary with subscription payment details dailyFinancial Services Firm
s.art090 Safekeeping duties regarding ownership verification and record keeping Regulated
  • Cooperate with depositary on ownership verification and record-keepingFinancial Services Firm
s.art091 Reporting obligations for prime brokers Regulated
  • Ensure prime broker agreement mandates daily reporting to depositaryFinancial Services Firm
s.art092 Oversight duties — general requirements Regulated
  • Provide depositary with all instructions and information for oversightFinancial Services Firm
s.art093 Duties regarding subscription and redemptions Regulated
  • Reconcile subscriptions and redemptions regularlyEmployer
s.art095 Duties regarding the carrying out of the AIFM’s instructions Regulated
  • Set up compliance monitoring and escalation procedures for AIF investment limitsAny Person
s.art097 Duties related to the AIF’s income distribution Regulated
  • Depositaries must oversee AIF income distribution and dividend paymentsAny Person
s.art100 Loss of a financial instrument held in custody Regulated
  • Have a documented process to identify custody asset losses and notify investors immediatelyFinancial Services Firm
s.art104 Content and format of the balance sheet or statement of assets and liabilities and of the income and expenditure account Regulated
  • Prepare financial statements with prescribed line items and formatAny Person
s.art106 Material changes Regulated
  • Assess and disclose material changes in fund information to investorsFinancial Services Firm
s.art107 Remuneration disclosure Regulated
  • Disclose staff remuneration details to investorsFinancial Services Firm
s.art110 Reporting to the FCA Regulated
  • Report AIF portfolio and risk data to the FCAFinancial Services Firm
s.art111 Use of leverage on a ‘substantial basis’ Regulated
  • Report to FCA when fund leverage exceeds 3x net asset valueFinancial Services Firm
51 other provisions — procedural and definitional
uri:annex/iii/division/3 uri:annex/iii/division/3
s.art001 Definitions
s.art001 Application of Articles 2, 7 and 8 to small AIFMs
s.art002 Calculation of the total value of assets under management
s.art012 Professional liability risks
s.art014 Additional own funds
s.art016 General obligations of the FCA
s.art021 Acting honestly, fairly and with due skills
s.art024 Inducements
s.art034 Managing conflicts of interest
s.art036 Disclosure of conflicts of interest
s.art038 Risk management systems
s.art039 Permanent risk management function
s.art042 Functional and hierarchical separation of the risk management function
s.art043 Safeguards against conflicts of interest
s.art047 Monitoring and managing liquidity risk
s.art050 Definitions
s.art055 Grandfathering clause
s.art056 Interpretation
s.art060 Control by the governing body, senior management and supervisory function
s.art063 Personal transactions
s.art065 Recording of subscription and redemption orders
s.art070 Periodic review of valuation policies and procedures
s.art073 Professional guarantees
s.art074 Frequency of valuation of assets held by open-ended AIFs
s.art075 General principles
s.art077 Features of the delegate
s.art078 Delegation of portfolio or risk management
s.art079 Effective supervision
s.art081 Consent and notification of sub-delegation
s.art082 Letter-box entity and AIFM no longer considered to be managing an AIF
s.art083 Contractual particulars
s.art084 Criteria for assessing prudential regulation and supervision applicable to a depositary in a third country
s.art088 Financial instruments to be held in custody
s.art089 Safekeeping duties with regard to assets held in custody
s.art094 Duties regarding the valuation of shares/units
s.art096 Duties regarding the timely settlement of transactions
s.art098 Due diligence
s.art099 Segregation obligation
s.art101 Liability discharge ...
s.art102 Objective reasons for the depositary to contract a discharge of liability
s.art103 General principles for the annual report
s.art105 Report on the activities of the financial year
s.art108 Periodic disclosure to investors
s.art109 Regular disclosure to investors
s.art112 Restrictions on the management of AIFs
s.art113 General requirements
s.art114 Mechanisms, instruments and procedures
s.art115 Data protection
s.art116 Exchange of information on the potential systemic consequences of AIFM activity
s.art117 Entry into force

Duty extraction and severity labels are Guvnor’s analysis of the instrument, not the instrument itself. Always verify against the linked source text.