European Commission publishes proposed amendments to the Alternative Investment Fund Managers Directive

Proskauer Rose LLP

Proskauer Rose LLP

On 25 November 2021, the European Commission (the “Commission”) published a legislative proposal with targeted amendments to Directive 2011/61/EU (“the “AIFMD”) and (to a certain extent) the UCITS Directive (“AIFMD Proposals”). The AIFMD Proposals form part of four proposals whereby the Commission aims to deliver on several key commitments in the European Union’s 2020 Capital Markets Union action plan.

The Commission acknowledges that the AIFMD has generally worked well in terms of introducing a harmonized, supervisory framework for alternative investment fund managers (“AIFM”s). However, the AIFMD Proposals set out certain key proposed amendments to the AIFMD including, (but not limited to, the following topics):

  • Delegation: increased scrutiny of delegation arrangements, particularly where the AIFM delegates alternative investment fund (“AIF”) management activities to third-countries;
  • NPPRs: No availability of national private placement regimes (“NPPRs”) for non-EU AIFs or non-EU AIFMs in certain high-risk or non-tax-co-operative jurisdictions;
  • Liquidity management: Liquidity risk management tools to be made available and used by managers of open-ended AIFs and UCITs;
  • Regulatory reporting: Streamlining data reporting requirements;
  • Loan Funds: Proposals aimed at introducing harmonized requirements for loan funds; and
  • Depositaries: broadening the depositary market to enhance competition while upholding EU standards in relation to depositary services.

Next steps and timing:

The AIFMD Proposals are still at an early stage – they are now under review by the EU Parliament and the Council of the EU and it is anticipated that agreement could be reached in mid-to-end 2022. This would lead to publication in the EU Official Journal in early 2023 and entry into application of the AIFMD Proposals in early 2025. AIFMs and other market participants should, therefore, continue to monitor these developments and engage in industry discussion.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Proskauer Rose LLP | Attorney Advertising

Written by:

Proskauer Rose LLP

Proskauer Rose LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.