For other AIFMs, the questions that can be asked include, whether:
- their fund management business is classified as ‘protected investment business’ by the FSCS;
- their investors are 'eligible claimants'; and
- the fund structure or location of domicile provides an exemption.
The changes were first proposed in a 2016 consultation paper CP16/42, and came into force in April 2018. It effectively means that FSCS protection is now being extended to participants in a wider variety of funds, including those which are unit trusts, ICVCs and limited liability partnerships (LLPs).