AIFMD

Course details

The AIFMD is one of the most controversial pieces of financial legislation ever to emerge from the EU Commission with far reaching implications across the alternative fund management world.

The AIFM Directive and Level 2 Regulations have been finalised, and firms operating in its scope should be in the process of implementation. This AIFMD workshop considers the finalised legislation and the timetable for implementation, to ensure that attendees fully understand the scope and impact of the Directive.

Learning Outcomes

• You will learn, in the context of the directive, about
• The impact of MiFID 2 on fund management firms
• The impact of AIFMD on operators of non-UCITS funds and MiFID firms
• Expectations for the future of off-shore funds

Who Should Attend

• This course is designed as an introduction to the AIFM Directive for any one operating within its scope or tasked with implementing the directive.

Course Content

AIFMD Legislation

• Legislative Overview
• Final AIFMD (“Level 2”) Implementing measures
• Implementation timeframe

Scope of the AIFMD

• Scope of application
• Determining who is the AIFM
• Authorisation requirements – getting registered as an AIFM
• Exceptions
• Impact on non-EU AIFMs

Key Issues (Part 1)

• Capital Requirements
• Conduct of Business requirements
• Organisation and Governance Arrangements
• Conflict of Interests
• Valuation of portfolio assets and use of “external valuers”
• Delegation
• Managing service providers, on-going, effective and efficient oversight
• Appointment of prime brokers
• Remuneration policy requirements

Key issues (Part 2) – Risk Management and leverage

• Risk management
• Liquidity Management arrangements
• Disclosures to investors – before investing and annually
• Regulatory reporting
• Calculation and reporting of leverage

Depositary Requirements and Depositary Liability

• Selecting an appropriate depositary
• Appointment and contracts
• Depositary oversight activities
• Depositary liability issues for different asset types

Marketing Arrangements

• What constitutes marketing under the new regime
• Obtaining the EU Passport
• Information to be provided to home state regulators
• Impact for non-EU AIFM

Third Country Provisions

• Limitations on the marketing of non-EU domiciled fund
• Impact on non-EU fund managers whose funds are privately placed or listed
• Treatment of passive marketing and reverse enquiries
• Impact of additional transparency rules
• Additional measures needed for distributors, placing, placing agents and intermediaries
• The 2015 European Passport

FCA’s Implementation of AIFMD

• UK Implementation – FCA’s and HM Treasury’s
• The new FUND Sourcebook