AIFMD - ESMA’s Final Advice
The European Securities and Markets Authority (ESMA) published its final advice to the European Commission on the detailed rules that are applicable to firms within the scope of the Alternative Investment Fund Managers Directive (AIFMD) on 16 November 2011.
ESMA had previously sent its advice out to consultation in July and August: there were over 150 responses – has ESMA listened?
During the consultation period the European Commission, and separately the European Parliament commented that they did not like many proposed aspects of ESMA’s advice. It remains to be seen to what extent the Commission will make changes between now and the middle of next year, which is the expected date for it to turn this advice into Regulations (directly applicable) or Directives (requires transposition into national law which permits greater flexibility for national interpretation).
Investment Managers should be aware that ESMA’s advice represents a positive step forward on the road to implementation, however significant concerns remain. It is important to note that this advice does not contain guidance on remuneration policies applicable to AIFM and this will be the next big piece of work for ESMA.
This briefing note sets out the high level answers to selected key questions that have been answered by the ESMA advice and will be useful reading for investment managers that manage and / or market funds in the EU, administrators, depositaries, prime brokers and sub-investment managers.