The European Commission has issued its much-awaited report (PDF 410 KB) on the Alternative Investment Fund Managers Directive (AIFMD). The report is short - only six pages of substance - but gives a clear sense of the direction of travel. A consultation is expected later in the year, followed by legislative proposals in early 2021. The report indicates that amendments will be few and targeted, and that a fundamental rewrite of AIFMD is not on the cards.
Meanwhile, managers of retail AIFs await final proposals from the European Supervisory Authorities to the Commission on amendments to the Level 2 rules on the PRIIP KID. Managers of AIFs investing in financial instruments, including institutional securities funds and many hedge funds, should keep a close eye on the evolving discussions on the review of MiFID II and MiFIR.
EU AIF managers may be pleased to note that major legislative change seems unlikely for the sector, but there could be changes to important points of detail, rules on remuneration policies being one example.
The Commission's report is issued in accordance with AIFMD Article 69, which required the Commission to start a review in July 2017 on the application and scope of the Directive and whether it has achieved its objectives. The June 2020 report includes multiple references to the study undertaken by KPMG in Germany for the Commission, which the Commission published in January 2019. In line with KPMG's findings, the Commission does not propose a full re-opening of the Directive.
The key points in the report are: