• FSA Announces New Rules for Funds of Alternative Investment Funds
  • March 18, 2010
  • Law Firm: Kaye Scholer LLP - New York Office
  • On 26 February 2010, the FSA published Policy Statement (“PS”) 10/3, “Funds of Alternative Investment Funds (“FAIFs”)”. This much-delayed paper responds to a consultation that took place in February 2008 on certain aspects of FAIFs; indeed, the original consultation on introducing FAIFs dates back to March 2007. The FSA gives no reason for the delay, but since the success of the FAIFs regime will depend on appropriate taxation regulations, one might guess that at least some of the delay (outside the global credit crisis) has been taken up in developing such regulations with HM Treasury and HM Revenue and Customs. Indeed, as noted below, new taxation regulations will come into force at the same time as the new FAIFs regime, on 6 March 2010.