The UK’s Retail Distribution Review (“RDR”) comes into force on December 31, 2012. Despite its title, the RDR will not be limited to the protection of investors that might traditionally be considered to be retail. The RDR may be relevant to anyone – including the US adviser to a private or other fund (a “Fund Manager”) – who markets a fund using a Financial Services Authority (“FSA”) authorized intermediary in the United Kingdom (“UK”) (such authorized intermediary is referred to in this alert as a “Financial Adviser”), where that Financial Adviser also provides a “personal recommendation” to an investor in the fund. In particular, the RDR may require Fund Managers to revisit the compensation arrangements which it has in place with any Financial Adviser who distributes the fund in the UK to investors that fall within the definition of “retail client” for purposes of these rules, including certain high net worth individuals.

Please see full alert below for more information.