Various clients have approached us with questions on the AIFMD (“Alternative Investment Fund Managers Directive) and therefore we want to provide a brief update here as well as some interesting links to EU documentation.
The AIFMD is part of the Union’s response to the financial crisis, and aims to create a comprehensive and effective regulatory and supervisory environment for alternative investment fund managers in Europe. The Delegated Regulation is a precondition for the application of the AIFMD in EU countries and was adopted to supplement certain elements of the AIFMD. These rules concern the:
- conditions and procedure for the determination and authorisation of AIFMs, including the capital requirements applicable to AIFMs
- operating conditions for AIFMs, including rules on remuneration, conflicts of interest, risk management, liquidity management, investment in securitisation positions, organisational requirements, rules on valuation
- conditions for delegation
- rules on depositaries, including the depositary’s tasks and liability
- reporting requirements and leverage calculation
- rules for cooperation arrangements.
On 19 December 2012 the European Commission adopted a Delegated Regulation supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision.
The Delegated Regulation adopted today is subject to a three-month scrutiny period by the European Parliament and the Council and will enter into force, provided that neither co-legislator objects, at the end of this period and the day following publication in the Official Journal.
Although there is a lot of attention in teh European Commission for the AIFMD we do not see all countries in the EU dedicating as much attention to the matter (especially countries that have their hands full getting/keeping their financial markets in order). At the same time their is quite some sceptisism in other countries (e.g. UK) against the implementation.
We therefore think there is a small chance the AIFMD level II measures may not be approved by the Commission or the Commission may decide to delay the implementation.
We will keep an eye out for you on the developments on the AIFMD.
Links:
Delegated Regulation
Impact Assessment – Summary
Impact Assessment – Full text