Here. Includes “a high level summary of what you need to know about the AIFMD”.
The Financial Services Authority today published its second consultation on rules and guidance to transpose the Alternative Investment Fund Managers Directive into national law (the first FSA consultation is here).
On 14 March 2013 HM Treasury published a further consultation on the transposition of the AIFMD into UK law (here is our post on the January 2013 Treasury consultation).
The consultation document is here; the accompanying press release is here; and the draft regulations published alongside the consultation (“The Alternative Investment Fund Managers Regulations 2013″) are here.
From the press release:
Here, published on 11 February 2013.
AIFMD: ESMA consults on guidelines on key concepts, and on draft regulatory technical standards on types of AIFMs
The European Securities and Markets Authority launched two AIFMD-related consultations on 19 December 2012:
Consultation on guidelines on key concepts of the AIFMD.
- Consultation on draft regulatory technical standards on types of AIFMs.
From the press release:
“The European Securities and Markets Authority (ESMA) has launched a consultation on Guidelines on key concepts of the Alternative Investment Fund Managers Directive (AIFMD). The Directive provides the legal framework for both alternative investment funds (AIFs) and their managers (AIFMs).
ESMA’s draft guidelines are aimed at clarifying the rules applicable to hedge funds, private equity and real estate funds. These proposals help to clarify what entities fall under the remit of the AIFMD, thereby creating a level-playing-field by providing for consistent application of the provisions throughout the EU. In order to achieve this, the guidelines set out the criteria for what is considered to be:
• a collective investment undertaking;
• capital raising;
• defined investment policy; and
• the number of necessary investors.
The draft Guidelines will contribute to the creation of a level playing field in the area of AIFs.
Draft Technical Standards on Types of AIFMs
ESMA has also issued a consultation on Draft regulatory technical standards on types of AIFMs, which are aimed at ensuring the uniform application of the AIFMD across the EU. These standards distinguish between managers of AIFs whose investors have the right to redeem their shares at least annually (open-ended AIFs), and those whose investors have less frequent redemption rights.
Both papers follow an earlier discussion paper published by ESMA in February. For some of the issues covered in that paper, which are not addressed in the consultations published today, ESMA will take into account the Commission’s Level 2 implementing measures before deciding on the appropriate next steps.
The closing date for responses to these consultations is 1 February 2013. The Guidelines and Technical Standards will be finalised in the first half of 2013.”
The Commission adopted the Delegated Regulation supplementing the Alternative Investment Fund Managers Directive on 19 December 2012. The Delegated Regulation can be read here.
From the press release:
“The AIFMD is part of the Union’s response to the financial crisis, and aims to create a comprehensive and effective regulatory and supervisory environment for alternative investment fund managers in Europe. The Delegated Regulation is a precondition for the application of the AIFMD in EU countries and was adopted to supplement certain elements of the AIFMD. These rules concern the:
- conditions and procedure for the determination and authorisation of AIFMs, including the capital requirements applicable to AIFMs;
- operating conditions for AIFMs, including rules on remuneration, conflicts of interest, risk management, liquidity management, investment in securitisation positions, organisational requirements, rules on valuation;
- conditions for delegation;
- rules on depositaries, including the depositary’s tasks and liability;
- reporting requirements and leverage calculation;
- rules for cooperation arrangements.
The Delegated Regulation adopted today is subject to a three-month scrutiny period by the European Parliament and the Council and will enter into force, provided that neither co-legislator objects, at the end of this period and the day following publication in the Official Journal.”
UPDATE 11 January 2013: Here is Nabarro on the implications of the Delegated Regulation.
A good note from Stephenson Harwood on ”20 things a UK-based hedge fund manager needs to do” when planning for the Alternative Investment Fund Managers Directive.
Policy options for implementing the Alternative Investment Fund Managers Directive
Remuneration of alternative investment fund managers: ESMA consultation paper, and “consistency of the rules for remuneration across financial sectors”
On 28 June 2012 the European Securities and Markets Authority published a consultation paper on its proposed guidelines on the remuneration of alternative investment fund managers. The consultation paper is here and the accompanying press release is here.
The guidelines, once adopted, will apply to hedge fund, private equity fund and real estate fund managers where those alternative investment funds are within the ambit of the Alternative Investment Fund Managers Directive (AIFMD). For background on the AIFMD, see these posts.
Keynote speech by Steven Maijoor, Chair of the European Securities and Markets Authority, at the EVCA Investors’ Forum
ESMA publishes discussion paper on key concepts of the Alternative Investment Fund Managers Directive and types of AIFM
European Securities and Markets Authority will use consultation responses to develop regulatory technical standards for the AIFMD
The FSA today published Discussion Paper 12/1 (the DP) on the “Implementation of the AIFMD”. The DP seeks the views of alternative fund managers as the FSA starts working on transposing the AIFMD into national law by the deadline of 22 July 2013. The DP can be read here.
Plan would create a “European Venture Capital Fund” designation and a single rulebook for marketing of VC funds across the EU
In June 2011 we reported on the European Commission’s consultation on the need for an EU-wide “passport” for venture capital funds. Yesterday the Commission published its proposed regulation that would create this passport and summarised it in its press release as follows:
“The new regulation will make it easier for venture capitalists to raise funds across Europe for the benefit of start-ups. The approach is simple: once a set of requirements is met, all qualifying fund managers can raise capital under the designation “European Venture Capital Fund” (EVCF) across the EU. No longer will they have to meet complicated requirements which are different in every Member State. By introducing a single rulebook, venture capital funds will have the potential to attract more capital commitments and become bigger.”
As the Commission observes in its frequently asked questions document on the proposed regulation, at the moment:
“there are no specific EU level rules that facilitate fund-raising by venture capital fund managers. Venture capital is much more developed in some countries than in others but only nine Member States have put in place dedicated rules for venture capital. The remaining 18 countries apply general rules on company or corporate law to venture capital funds. As a result, there is limited cross-border fundraising activity of European venture capital funds. On average, the proportion of cross-border fundraising for all types of venture capital funds has for the last four years reached only 12% (€ 2.5 billion)”.
The EVCF passport
The European Venture Capital Fund passport would be available for venture capital funds that:
On 16 November 2011 the European Securities and Markets Authority (ESMA) published its final advice on the detailed rules that will underlie the Alternative Investment Fund Managers Directive (AIFMD). ESMA’s final advice (500 pages) and the accompanying press release can be accessed here.
The AIFMD has to be implemented into the national law of the EU member states by 22 July 2013. The AIFMD’s objective is to create a comprehensive regulatory and supervisory framework for alternative investment managers - private equity firms, hedge funds, real estate funds, commodity funds and all other funds that are not covered by the UCITS Directive – at European level. ESMA has drawn up its detailed technical advice at the request of European Commission. For more on the AIFMD generally, see our “Private equity” category and particularly this post.
ESMA’s advice covers four main areas, as summarised in its press release:
The Financial Services Authority’s Director of Conduct Policy, Sheila Nicoll, gave a useful overview of the current state of play on:
- the Alternative Investment Fund Managers Directive (AIFMD); and
- the draft Markets in Financial Instruments Directive II (MiFID)
in a speech on 1 November 2011. Observing that she “cannot promise any great respite” from regulatory change and conceding that the alternative fund management industry is feeling “a lot of regulatory interference”, Ms. Nicoll’s speech covered:
Executive Director of ESMA sets out the regulator’s focus of work
ESMA continues work on implementation of the AIFMD
FSA summary of the Alternative Investment Fund Managers Directive
UK regulator’s perspective on the development of the AIFMD
EU Member States will have to bring the AIFMD into force in their national law by 22 July 2013
Private equity and hedge funds: EU formally adopts the Alternative Investment Fund Managers Directive
Member States will have two years to put the AIFM Directive’s provisions into national law