AIFMD Obligations: What You Need to Know
As the Alternative Investment Fund Managers Directive (AIFMD) takes effect, fund managers and investors are facing a host of new obligations. To help you navigate these changes, we’ve compiled a list of frequently asked questions and answers.
De Minimis Threshold
- Q: What happens if PIF managers do not exceed the de minimis threshold?
- A: They will need to complete the Self-Assessment Questionnaire for Fund Managers and Self-Managed Collective Investment Schemes applying as de minimis Licence Holders. The license will be classified as a Category 2 De Minimis Fund Manager licence.
Cut-off Date
- Q: What is the cut-off date for submission of the Self-Assessment Questionnaires?
- A: March 31, 2014, at the latest.
Existing Licensees
- Q: How do existing licensees need to adapt to the AIFMD requirements?
- A: Existing licensees will need to comply with the new AIFMD requirements, including reporting and transparency obligations.
Passporting of MiFID Services
- Q: Can EU AIFMs passport their services to Malta?
- A: Yes, according to the European Commission’s revised view, a notification to passport MiFID ancillary services by an EU AIFM in a host Member State should be accepted by the host state regulator.
Assets Under Management
- Q: Can long and short positions in derivative instruments with the same underlying asset be netted when calculating total value of assets under management?
- A: No, according to Article 2 of the Commission Delegated Regulation. Each derivative instrument position must be converted into its equivalent position in the underlying assets.
Currency Hedging
- Q: Should derivative instruments used for currency hedging purposes and that do not add any incremental exposure, leverage or other risks be included when calculating total value of assets under management?
- A: Yes, according to Article 2 of the Commission Delegated Regulation.
Investing in Internally-Managed AIFs
- Q: What happens if an AIF invests in other internally-managed AIFs or AIFs managed by the same externally-appointed manager?
- A: The AIF will need to disclose this information and provide details on its investments in other AIFs.
These FAQs are designed to help you understand the key obligations under the AIFMD. If you have any further questions, please consult with a qualified professional or regulatory body.