The European Parliament has issued its draft report (Report) on the European Commission's proposals to amend the existing Alternative Investment Fund Managers Directive (AIFMD II). The Report forms part of the legislative process and includes the European Parliament's suggested amendments to the draft directive issued by the European Commission in November 2021. The draft directive proposed a number of changes to the Alternative Investment Fund Managers Directive, largely in respect of delegation, loan origination, liquidity risk management, data reporting and depositaries and it is those areas which are the main focus of the Report.
Many of the European Parliament's proposals appear to be helpful for alternative investment fund managers (AIFMs), but there is still some way to go in the trialogue negotiations so some of these proposals may not make the final cut. This will need to be monitored closely and industry associations are engaged on these issues.
The main changes proposed by the European Parliament in the Report are discussed below. Some of these changes are also applicable to the proposals in respect of the UCITS Directive.
For more information on the European Commission's original proposals on AIFMD II, please see our November 2021 briefing.