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United Kingdom
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Key definition
Alternative Investment Fund Managers definition

What does Alternative Investment Fund Managers mean? Alternative investment fund managers (AIFMs) are the firms or legal persons that manage alternative investment funds (AIFs)—for example hedge, private equity, real estate and infrastructure funds—either as an external manager or as a self‑managed AIF. In practice, the AIFM carries out portfolio and/or risk management and is responsible for the AIF’s regulatory compliance. The term is defined in legislation: in the UK by the onshored AIFMD regime (Alternative Investment Fund Managers Regulations 2013 and FCA Handbook (FUND)), and in Ireland by the EU AIFMD (Directive 2011/61/EU) implemented through the European Union (Alternative Investment Fund Managers) Regulations 2013 and Central...

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UK AIFM depositaries: eligibility, appointment, core functions, delegation and liability, depositary agreements and reform outlook

Practice notes
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This Practice Note explores the position of depositaries under the UK framework that transposes the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (AIFMD). It examines the Depositary obligations within the UK AIFM regime, setting out which UK entities can serve as a depositary, the scope of their functions (including oversight), and the rules on delegation, liability, and the depositary agreement. For details on the parallel EU regime, see Practice Note: EU AIFMD—depositaries.

UK implementation of AIFMD depositary requirements

The AIFMD has been given effect in the UK through a blend of primary legislation in the Financial Services and Markets Act 2000 (FSMA 2000), secondary legislation—principally the Alternative Investment Fund Managers Regulations 2013, SI 2013/1773 (AIFM UK Regulations)—and rules made by the Financial Conduct Authority (FCA) across its Handbook, chiefly in the Investment Funds sourcebook (FUND). Within the FCA Handbook, AIF depositary provisions sit mainly in FUND 3.11 (in accordance with the table in FUND 3.11.2 R and FUND 3.11.3 R). These rules are supplemented by Articles 83 to 102 of Assimilated Regulation (EU) 231/2013 (the UK AIFM Level 2 Regulation)...

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Web page updated on 22/05/2026

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