European Parliament Draft Report Recommends Changes to Proposed AIFMD 2
Commentary by Gregg Beechey
In a draft report, the European Parliament Committee on Economic and Monetary Affairs proposed amendments to a draft legislative proposal by the European Commission ("EC") that would revise the Alternative Investment Fund Managers Directive ("AIFMD").
On November 25, 2021, the EC proposed amendments with respect to "delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds." These proposed changes would result in "AIFMD 2," which would impact not only funds managed in the EU, but also those non-EU funds marketed into the EU.
The EU's regulatory process requires that the EC's proposal for "AIFMD 2" be considered by the European Parliament and European Council. This draft report responds to the EC's 2021 proposal and seeks to "complete and contribute to the integration objective of European capital markets."
Commentary
There is no guarantee that these proposed amendments will make their way into the final text of what is - at present at least - a relatively modest set of amendments to the existing regulatory framework. That said, publication of this draft report does show progress and that AIFMD 2 is now one step closer to implementation, albeit the final form remains uncertain.