EU Regulatory Update

Author: Clerkin Lynch LLP

Date Published 30/11/2021

AIFMD Review Published

Under Article 69 of AIFMD the European Commission is required to review the application and scope of that Directive. Accordingly a draft proposal to revise the AIFMD (the ‘draft proposal’) was prepared and published on 253 November 2021.

Key issues addressed include:
1. Harmonisation between AIFMD and UCITS Directive regarding delegation, liquidity risk management and reporting.Delegation
2. Third country issues
3. Loan funds
4. Liquidity risk management

Of particular interest from an Irish perspective are the provisions relating to delegation, given the extent to which this is the standard operating model in the industry. The proposal includes a requirement for ESMA to conduct a peer review analysis at least every two years of the supervisory activities of the competent to focus on the measures taken to prevent that AIFMs, which delegate performance of portfolio management or risk management to third parties located in third countries, become letter-box entities.

https://ec.europa.eu/finance/docs/law/211125-proposal-aifmd_en.pdf