Certification requirement for key investment team of manager of AIF

In accordance with SEBI's regulatory requirements, IVCA provides guidance on the certification requirement for key investment team members of Alternative Investment Funds (AIFs).

Overview

On May 13, 2024, SEBI issued Circular No.: SEBI/HO/AFD-1/AFD-1-PoD/P/CIR/2024/42 titled “Certification requirement for key investment team of manager of AIF.” According to this circular, at least one key personnel of the key investment team must obtain the necessary certification from NISM before the launch of the AIF. This certification is now an eligibility criterion for obtaining AIF registration or launching a scheme.

IVCA's Representation to SEBI

In response to the SEBI circular, IVCA made a representation requesting that AIFs be allowed to file their documents with SEBI along with an undertaking. This undertaking must state that at least one key personnel of the key investment team will obtain the necessary certification from NISM before the launch of the AIF. SEBI has accepted this request and has asked industry associations to inform their members accordingly.

Action Required

All AIF members are required to adhere to the following steps:

1. Review SEBI Circular No.: SEBI/HO/AFD-1/AFD-1-PoD/P/CIR/2024/42 here.
2. Prepare the undertaking using the provided template.
3. Ensure that at least one key personnel of the key investment team obtains the NISM AIF Certification before the launch of the AIF.

Undertaking Template

A sample copy of the undertaking is provided below for your reference. You may adopt a similar template based on discussions with your advisors. The content highlighted in yellow may be amended depending on whether the Manager or the Sponsor is signing the undertaking and whether the application is for a new AIF approval or the launch of a scheme.

Deadline: June 30, 2024

For any questions or further information, please contact us at info@ivca.in.