The EIS bash Regulation, but bite-sized

Gillian , Richard, Tracy & Laura

Caught up in AIFMD

Alternative Investment Fund Managers Directive

• EIS caught in the nets

• Trend is to be a “small authorised” AIFM

• The big decision: an EIS AIF or a bespoke portfolio

Fund vs Bespoke Portfolio

Fund Bespoke portfolio

One strategy Client specific decisions

Product Service

Managing an AIF Managing Investments

Appropriateness Suitability

AIFMD MiFID

Marketing, marketing, marketing

Spotted!

EIS marketing under scrutiny

plus

• Changes post AIFMD

• NMPIs Non mainstream pooled investments

» Ordinary retail vs HNWI & Sophisticated

• DOFPs Direct offer financial promotions

Direct Offer Financial Promotions

• Retail welcome: 10% or advised sales

• Appropriateness test for non advised

• Applies to ‘non readily realisable securities’

• Remember! Not all marketing material is caught

Supervision more visible

• Financial promotions

• Mystery shopping

• FCA interviews

Emerging theme: ‘conduct risk’

• Moving beyond rules

• Lots of onus, little direction

• Good and poor outcomes

New style reporting

Annex IV

Reporting on AIFs and AIFMs

XML or Gabriel option

Not designed with EIS in mind

CoRep

Capital Adequacy for “IFPRU” firms

XBRL

Risk weighted balance sheet

New rules imminent…

Social media

• Retail rules - tough in small spaces

• #ad

• Use of images

• Sharing & retweeting

How not to use images in Twitter

New rules imminent…

Advised vs non-advised models

11

Suitability

Advice

permissions

Guidance tools

Simplified,

Focused

or

Full Advice

Our predictions

Industry Regulation

Social investment & SITR

HNWI limit rise: delayed

EIS moving online

Build up to MiFID II Markets in Financial Instruments Directive

More EuVECAs

Focus on transparent charges

Your to do list

EIS Fund managers

• Only 2 weeks to Annex IV deadline

• Dust off procedures

• Remember to register any new funds

EIS bespoke portfolio managers

• Get MiFID II on your radar

• Check your suitability practices

All

• Put conduct risk on your board’s agenda