Alternative Investment Fund Managers Directive ('AIFMD')
AIMA actively monitors and advocates on a variety of initiatives that will affect the operations of alternative investment fund managers ("AIFMs"). This can include matters within the four corners of AIFMD such as requirements affecting organisational, operational and risk management functions, managing leverage and liquidity risks, remuneration, investments in securitisations and private companies, valuation, delegation, interactions with depositaries, and marketing, among other things. It also inlcudes initiatives outside the AIFMD itself, including ESG, the requirements under DORA, etc. where AIFMs are in scope.
AIFMD Level 2 (Commission Delegated Regulation 231/2013) has been recently amended by the European Commission to incorporate sustainability-related factors in the management of an AIFM. The new requirements notably ask that AIFMs shall take into account sustainability risks when conducting due diligence and that they must retain the necessary resources and expertise for the effective integration of sustainability risks in their operations. Furthermore, AIFMs' senior managers are now responsible for the integration of sustainability risks in their managment activities. The delegated act is subject to a scrutiny period until July 2021 and should thereafter be published in the Official Journal. It will enter into application 12 months after the publication in the Official Journal. The current version of the delegated act is available here.
Member States are currently transposing the changes to AIFMD made by the Cross-Border Distribution of Funds ("CBDF") Directive into national law. Those national requirements and the related CBDF Regulation will apply from 2 August 2021. ESMA has also published Guidelines on marketing communications listing some prescriptive requirements to apply to marketing materials, as well as a Report on marketing requirements and marketing communications presenting each EU member states marketing requirements and assessing cross-border distribution of funds in the EU. AIMA, together with AIMA Sponsoring Partners KPMG and Clifford Chance, has also developed an implementation guide to assist AIFMs in addressing the new compliance requirements introduced under the CBDF Directive and CBDF Regulation. This implementation guide can be accessed in the AIFMD Resources tab below. Although these new marketing and pre-marketing requirements will apply in the EU, our understanding is that the FCA is not intending to introduce these requirements in the UK.
The European Commission is currently considering the scope and nature of the changes to the Level 1 Directive and to the Level 2 Delegated Regulation they will propose in their next consultation paper, currently expected to be published in November or December 2021.
(Last updated: 12 July 2021)
Other related workstreams