AIFM Alternative Investment Funds: European Council adopts its position

12/09/2022

On June 17, 2022, the Council reached agreement on its position on a review of the alternative investment fund managers directive, the legislative framework which governs managers of hedge funds, private equity funds, private debt funds, real estate funds and other so-called alternative investment funds in the Union.

The proposal aims at improving the integration of asset management markets in Europe while modernising the framework for key regulatory aspects.

It not only updates the alternative investment funds managers (AIFM) directive, but also the rules applicable to undertakings for the collective investment in transferable securities (UCITS), the regulatory framework that allows for the sale of cross-Europe mutual funds.

In its position, the Council

  • stresses the importance of consistent harmonisation in the area of liquidity risk management.

  • supports the creation, as proposed by the European Commission, of an EU framework for loan-originating funds.

  • clarifies the rules for outsourcing and the delegation of certain functions by fund managers to third parties and increases the supervisory cooperation in this area.

Other key issues for the Council concern the framework for the provision of cross-border services by depositaries, new reporting obligations for UCITS for the purpose of risk monitoring and new transparency rules to enhance investor protection.

Head of Knowledge Management Strategy and Market Infrastructure - SGSS