On November 25, 2021, the European Commission (the “Commission”) Published a legislative proposal with targeted amendments to Directive 2011/61 / EU (“ the “AIFM“) and (to some extent) the UCITS Directive (“AIFMD proposals“). The AIFMD’s proposals are part of four proposals by which the Commission aims to honor several key commitments of the European Union’s 2020 action plan on the Capital Markets Union.

The Commission acknowledges that the AIFMD has generally worked well in terms of introducing a harmonized supervisory framework for AIFMs (“AIFMHowever, the AIFMD Proposals set out some key proposed amendments to the AIFMD, including (but not limited to the following topics):

  • Delegation: greater control over the terms of delegation, in particular when the manager delegates alternative investment funds (“FIA”) Management activities to third countries;
  • NPPR: Lack of national private placement regimes (“NPPRs ”) for non-EU AIFs or non-EU AIFMs in certain high-risk or non-cooperative tax jurisdictions;
  • Liquidity management: Liquidity risk management tools made available and used by managers of open-ended AIFs and UCITS;
  • Regulatory reports: Streamlining of data reporting requirements;
  • Loan Fund: Proposals to introduce harmonized requirements for loan funds; and
  • Custodians: expand the depository market to enhance competition while respecting EU standards for depositary services.

Next steps and timetable:

The AIFMD’s proposals are still in their early stages – they are currently under consideration by the European Parliament and the Council of the EU and it is expected that an agreement could be reached by now. mid-end of 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. Managers and other market players should therefore continue to monitor these developments and engage in discussions with the sector.

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