The press release relating to the Provisional Agreement on new rules for alternative investment fund managers (“AIFMs”) was published on 20 July 2023. The Provisional Agreement pertains, inter alia, to the amendment of the alternative investment fund managers directive as amended from time to time (“AIFMD”) with the aim to improving the European capital market and bolstering investor protection within the EU.

The European Parliament and the Council have agreed to enhance the availability of liquidity management tools (“LMTs”) with new requirements to be provided when activating these LMTs. This measure is designed to ensure that AIFMs can handle significant outflows during periods of financial turbulence or turmoil.

Additional requirements have been agreed upon for loan origination funds. These requirements aim to address risks associated with financial stability and investor protection.

In the Provisional Agreement, the rules about the delegation by AIFMs to third parties have been expanded to further strengthen supervision and maintain market integrity.

Moreover, the European Parliament and the Council have agreed, among other things, on enhanced data sharing and cooperation between the national competent authorities and the EU authorities. They have also established new rules to identify undue costs that might be charged to alternative investment funds and rules against names that could be potentially misleading to investors.

Please note that the Provisional Agreement has not yet been published and is subject to further negotiations and confirmation by the Council and the European Parliament before the formal adoption and publication.

Access the press release related to the Provisional Agreement here.

Discover our AIFMD II timeline here.

Should you have any inquiries or require expert guidance pertaining to the information provided, our investment management team is available to assist you. Please feel free to contact us.