Selected regulatory updates of interest to the funds and asset management sector. See also our Related Materials links for regulatory updates of broad application.
Contents:
- AIFMD: ESMA guidelines addressing leverage risks
AIFMD: ESMA guidelines addressing leverage risks
The European Securities and Markets Authority (ESMA) has published a webpage with the official translations, including the English language version, of its guidelines to address leverage risks under Article 25 of the Alternative Investment Fund Managers Directive (AIFMD). The publication of the official translations triggers a "comply or explain" date for national competent authorities to incorporate the guidelines into their national frameworks by 23 August 2021.
The guidelines provide national competent authorities with a set of indicators to consider when performing their risk assessment and a set of principles to take into account when calibrating and imposing leverage limits. They follow the two-step approach introduced by the International Organization of Securities Commissions, and translate this approach into the EU framework.
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