AIFMD: the directive amending the AIFM and UCITS directive has been published
On 7 February 2024, the Council adopted the Directive, which amended the Alternative Investment Fund Managers Directive (AIFMD) and modernised the framework governing Undertakings for Collective Investment in Transferable Securities (UCITS) at European Union (EU) level.
Among the key elements, the amending directive modernises the framework for liquidity management tools, clarifies the EU framework for funds that provide loans to companies and introduces enhanced rules for delegation by portfolio managers to third parties. It confirms that a central securities depository (CSD) is considered to be a delegate of the depositary bank when acting as depositary, and it does not alter the requirement that the depositary must be located in the country in which the fund is domiciled, even though it grants exemptions to certain States.
The Directive was published in the EU's Official Journal of March 26, 2024.