On 17 June 2020, the Autoriteit Financiële Markten (AFM) published recommendations for the review of AIFMD.
16 Jul 2020
1. Introduction of a third-country passport
One of the most important recommendations concerns the introduction of a properly functioning third-country passport. For an efficiently functioning and transparent European asset management market, it is essential that non-EU management companies can offer their services in Europe. The issue of the third-country passport has become more important due to Brexit.
The AFM proposes a phased approach, in which the various National Private Placement Regimes (NPPR) of Member States would continue until the third-country passport has proved to be a viable option in practice.
2. Central collection of AIFMD data and improved data quality
The AFM also recommends that the AIFMD data should be collected by an independent third party, with national supervisory authorities having access to this central data source. This will contribute to the (timely) availability of data and will increase data quality.
3. European process
The AIFMD report from the European Commission was published on 10 June, addressed to the European Parliament and the European Council. This includes the AIFMD issues on which the Commission wishes to consult. The consultation itself is expected to begin in September.
4. AFM supervision
The AIFM Directive (which came into effect in the Netherlands on 22 July 2013) is a European directive that introduces harmonised rules for management companies of AIFs. Among other things, the directive aims to subject the activities of management companies of AIFs to harmonised European regulation, so that a passport system can be introduced in Europe.
In addition to the rules for obtaining a license, the directive sets continuous requirements such as prevention of conflict of interest and appropriate risk and liquidity management. The directive also obliges management companies of AIFs to communicate transparently with (potential) investors and supervisory authorities. Ultimately the directive is intended to improve the management of systemic risks.
This article was originally published in the June edition of REGWATCH. Read the full edition covering the following jurisdictions:
- European Union
- Hong Kong
- United Kingdom