ESMA publishes final report on key AIFM Directive

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The European Securities and Markets Authority (ESMA) published on 24 May its final report on guidelines for key concepts under the Alternative Investment Fund Managers Directive (AIFMD). The report reflects feedback received by ESMA following its publication of a discussion paper on key concepts and types of alternative fund manager on 23 February last year, and in particular a consultation paper issued on 19 December.

The consultation paper, which received 37 responses from asset managers, banks, law firms, industry associations, a private-equity administrator and public authorities, set out formal proposals for guidelines ensuring common, uniform and consistent application of the concepts in the definition of alternative investment funds in Article 4(1)(a) of the directive by providing clarification on each of these concepts. An important factor is avoiding regulatory arbitrage resulting from national regulators interpreting terms used in the directive in different ways.

A cost-benefit analysis conducted by ESMA estimates that the introduction of the guidelines will make relatively little impact on the number of EU-domiciled funds that3will fall under the directive according to the definition in the legislative text, estimated at between 25,650 and 28,975. The authority believes there will be ‘no material impact’ on the Luxembourg-domiciled funds affected, which it says number at least 2,000…

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