MFA submits comments to PRA on duplicative due diligence requirements

MFA submitted comments to the Prudential Regulatory Authority’s (PRA) consultation paper released on securitistion requirements. The letter expresses that alternative investment fund managers (AIFMs) should not be subject to due diligence requirements that are duplicative and redundant to existing obligations.

The letter highlights a number of concerns regarding the requirements:

  • The requirements put UK alternative investment fund managers (AIFMs) at a disadvantage globally
  • They do not account for fundamental differences between UK AIFMs and banks
  • The requirements have restricted investment opportunities
  • UK AIFMs are already subject to extensive risk management obligations

MFA believes removing these regulations will increase capital investment in the UK and optimize risk management on behalf of UK investors, allowing UK AIFMs to compete on an international scale.