AIFMD UPDATE WHAT DOES THE AIFMA MEAN FOR YOU?

AIFMD Update What does the AIFMD mean for you? Deirdre Power Partner, Investment Management Advisory Deloitte Dublin © 2011 Deloitte LLP. Private and confidential. AIFMD Overview Getting this far has been difficult… • Directive finally published in the Official Journal on 1st July 2011 • Political agreement reached in November 2010 after 19 months of intense debate and horse-trading • Generated the most amendments in the history of the European Parliament • Four ESMA papers amounting to over 500 pages Some quotes at the beginning of the journey: "This is a very dodgy Directive that`s been poorly constructed. It was produced in a hurry. It`s a process that makes those who support the European Union embarrassed." Treasury Minister Lord Myners (9th November 2009) “Almost all” of the Directive’s provisions need to be redrafted to make them appropriate, proportionate and adequate. Patrice Bergé-Vincent of French financial regulatorAMF (9th October 2009) 2 AIFMD Overview Scope: • Direct regulation ofAlternative Investment Fund Managers (AIFM) • Indirect regulation ofAlternative Investment Funds (AIF) and their service providers • Applies if the AIFM or AIF is EU-based or if it is intended to market in the EU • An AIF is any fund that is not a UCITS Aims: • Provide common rules for the authorisation and supervision ofAIFM • Increase the transparency ofAIFM towards investors / stakeholders • Provide tools for regulators to monitor systemic risk • Ensure investor protection • Achieve a Single European Market for AIFs (EU Passport) • Increase the accountability of AIFM holding controlling stakes in companies (private equity) Impacts how an AIFM distributes their funds, remunerates their people, operates their business and the support needed to do so 3 AIFMD: Key Elements Authorisation / Oversight Remuneration Depositary Capital Valuation Transparency to Investors & Regulatory reporting Risk/Liquidity Management , Leverage Delegation Marketing & Third Country Provisions Level 2 Implementation ESMA / Commission 4 AIFMD Timeline • July – September 2011 ESMAconsultations • By 16 November 2011 ESMAwill publish its final advice • By Quarter 2 2012 the European Commission will issue final implementing measures • 22 July 2013 member state transposition deadline (EU passport) • A non-EUAIFM may need to register with the FSA by 22 July 2013 to continue to privately place their funds in the UK • By 22 July 2014 AIFMs within scope and in business prior to the transposition date will need to be compliant. (An AIFM that is set up on or after the transposition deadline cannot avail of this 1 year grace period.) We are here 2010/11 Directive published 2011 Level 2 measures 2013 National Implementation, EU passport 2015 Third country Passport 2018 End of private placement 5 ... - tailieumienphi.vn