Flashnews: Review of AIFM and UCITS Directives – Proposal from the European Commission


The European Commission published on 25 November 2021 a proposal amending AIFM Directive (Directive 2011/61/EU), notably based on the analysis of the answers to the public consultation on the functioning of this directive that closed on 29 January 2021.

The AIFM1 Directive has reached its objectives of creating an internal market for AIFs, nevertheless targeted improvements are proposed to improve the Directive’s effectiveness in the following areas:

  • Clarify delegation rules,

  • Harmonise liquidity management tools,

  • Improve the level of data gathered through regulatory reporting,

  • Include Central Securities Depositaries (CSDs) in the custody chain,

  • Harmonise requirements for AIFMs active in the direct lending space,

  • Improve the supply of depositary services in European small markets.

The European Commission also recommends amending the UCITS2 Directive (Directive 2009/65/EC) specifically regarding delegation, liquidity risk management, data reporting and regulatory treatment of CSDs.

Next Steps: The European Commission’s proposal is now under review of the European institutions (Parliament and Council). Once adopted by the EU co-legislators, Member States will have 24 months for transposition in local law.

1AIFM: Alternative Investment Fund Managers
2UCITS: Undertakings for the collective investment in transferable securities