Article 76 Objective reasons for delegation

United Kingdom

The AIFM shall provide the F1FCA with a detailed description, explanation and evidence of the objective reasons for delegation. When assessing whether the entire delegation structure is based on objective reasons within the meaning of F2rule 3.10.2(2)(a) of the Investment Funds sourcebook the following criteria shall be considered:

(a)

optimising of business functions and processes;

(b)

cost saving;

(c)

expertise of the delegate in administration or in specific markets or investments;

(d)

access of the delegate to global trading capabilities.

Upon request by the F3FCA, an AIFM shall provide further explanations and provide documents proving that the entire delegation structure is based on objective reasons.

Annotations

Textual amendments

F1: Word in Art. 76(1) substituted (31.12.2020) by The Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/328), regs. 1(3), 31(3)(a) (as amended by S.I. 2019/325, regs. 1(3), 58); 2020 c. 1, Sch. 5 para. 1(1)
F2: Words in Art. 76(1) substituted (31.12.2020) by The Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/328), regs. 1(3), 31(3)(b) (as amended by S.I. 2019/325, regs. 1(3), 58); 2020 c. 1, Sch. 5 para. 1(1)
F3: Word in Art. 76(2) substituted (31.12.2020) by The Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/328), regs. 1(3), 31(3)(a) (as amended by S.I. 2019/325, regs. 1(3), 58); 2020 c. 1, Sch. 5 para. 1(1)