Luxembourg, Luxembourg – (6 February 2019) – The European Commission has published the report on the operation of the Alternative Investment Fund Managers Directive (AIFMD), which was conducted by KPMG. The research was done by a cross-service team composed of specialists from KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law), led by Ulrich Keunecke, from KPMG AG Wirtschaftsprüfungsgesellschaft, including in particular the KPMG EU Services Team led by Olaf Buske and member firms of the global KPMG network.
Article 69 AIFMD mandates the European Commission to review the achievement of the objectives of the directive based on the practical experiences of its effects on the European AIF market. The report is a crucial part of this review. It focused on 15 selected member states and analysed achievement of the AIFMD’s objectives against five principles – effectiveness, efficiency, coherence, relevance and EU added value. The report consists of two main sections. The general survey among AIFM, regulators and other stakeholders asked questions about specific aspects of AIFMD and market developments. The evidence-based study was based on desk research, the general survey results, interviews, quantitative data collection and analysis.
Most areas of the provisions are assessed as having contributed to achievement of the AIFMD’s objectives and to have done so in accordance with the five principles. There are, however, aspects that have not contributed, or may be counter to, the achievement of these aims – particularly, but not exclusively, in relation to the principles of effectiveness and efficiency.
Dee Ruddy, Director, Regulatory Advisory at KPMG Luxembourg, explained: “The overall findings indicate that the AIFMD has played a major role in helping to create an internal market for AIFs and a harmonized and stringent regulatory and supervisory framework for AIFMs. There was, though, an overriding concern that AIFMD implementation had been costly for both firms and regulators, with reportedly limited added value for investors.”
The authors thank the national regulators for their support as well as all participants of the online survey and expert interviews.
The official statement and report can be downloaded on the European Commission’s publication portal via this link.