FUND — Investment Funds sourcebook

Category: Compliance & AML · Reviewed by Chrissie Anderson, Client Executive · Last reviewed June 2026

The FCA Handbook sourcebook implementing the UK AIFMD regime for managers of alternative investment funds, covering authorisation, conduct, capital, depositary, leverage and reporting obligations.

Definition

FUND is the Investment Funds sourcebook. It implements the rules originating in the Alternative Investment Fund Managers Directive (AIFMD) for UK managers of alternative investment funds (AIFs) — i.e. funds other than UCITS. It also incorporates portions of the venture capital fund manager regimes (EuVECA / EuSEF) as retained in UK law.

Legal / Regulatory basis

Made under FSMA sections 137A, 138 and Schedule 1A. It implements the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) as retained in UK law (the Alternative Investment Fund Managers Regulations 2013, S.I. 2013/1773) and the EuVECA Regulation (Regulation (EU) No 345/2013) as retained.

How it works in practice

FUND is divided into 12 chapters. FUND 3 covers conduct rules. FUND 3.5 covers the depositary requirement. FUND 3.7 covers leverage. FUND 3.8 covers professional liability. FUND 3.11 covers transparency and reporting (Annex IV reporting). For an insurance broker this sourcebook is not applicable unless the firm holds wider permissions extending into fund management.

Common variations

Sub-threshold AIFMs (small registered or small authorised) face a lighter regime. UCITS managers sit under COLL rather than FUND.

Example

A pure insurance intermediary is not within FUND. A group that contains both an intermediary and an AIFM would maintain separate Handbook obligations for each authorised entity.

See also

• COLL — Collective Investment Schemes sourcebook
• COBS — Conduct of Business Sourcebook
• GENPRU — General Prudential sourcebook

References

FCA Handbook, Investment Funds sourcebook (FUND). Financial Services and Markets Act 2000, sections 137A and 138. UK retained Alternative Investment Fund Managers Directive (Directive 2011/61/EU). Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773). UK retained EuVECA Regulation (Regulation (EU) No 345/2013).

Last reviewed

By Matt Bartlett, Director, on 2026-06-11.

This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Apex Insurance Brokers Limited, FCA FRN 724952, Companies House 07014570. Not regulated advice — consult your broker on your specific position.