The FCA has confirmed this week that alternative investment fund managers (‘AIFMs’) of non-UCITS retail schemes (‘NURS’) will continue to be able to benefit from a ‘modification by consent’ of the COBS and COLL Sourcebooks. This regulatory concession allows AIFMs to elect to provide a key investor information document (known as a ‘NURS KII’) for any NURS they manage, instead of preparing a simplified prospectus or key features document. The NURS KII is very similar to the UCITS KIID although there are some variations, particularly for those funds with 20% or more exposure to immoveable property.

The modification was introduced in conjunction with the FCA’s implementation of UCITS IV and has been widely used by AIFMs; however, all existing modifications are set to expire on 30 June 2014. The FCA has now extended the availability of the modification by consent until 30 June 2016. Those firms that already hold the modification and wish to take advantage of the extension must apply in good time before the expiry of the current modification on 30 June. Applicants should write to the FCA’s Central Waivers Team (or email centralwaiversteam@fca.org.uk) to obtain the modification/extension