On 2 December 2010, the European Commission sent a request for assistance to the predecessor of ESMA, CESR, on the content of the implementing measures of the Alternative Investment Fund Managers Directive (AIFMD). Following receipt of this request, CESR published a call for evidence in order to gather input from external stakeholders (Ref. CESR/10-1459). ESMA publishes today a discussion paper (ESMA/2011/121) setting out its proposed approach, including alternative options where relevant, for developing the measures. Today’s paper seeks views from market participants on the policy options ESMA has identified with regards to the Commission’s mandate.
Today’s paper seeks views from market participants on the policy options ESMA has identified with regards to the Commission’s mandate. ESMA has published this discussion paper in order to narrow down the policy options for its future implementing measures of the AIFMD. However, at this stage the document does not include any formal proposals for advice on possible implementing measures. In particular, the discussion paper asks for stakeholders’ views on:
- how to identify the portfolios of Alternative Investment Funds (AIFs) under management by a particular
fund manager and the calculation of the total value of assets under management; - how leverage influences the assets under management;
- how to determine the value of the assets under management by an AIF for a given calendar year;
- how to treat potential cases of cross-holding among the AIFs managed by a fund manager;
- how to treat AIFMs whose total assets under management occasionally exceed and/or fall below the relevant threshold;
- what the registration requirements for entities falling below the threshold should be;
- how the obligation to register with national competent authorities should be implemented and establishing what the suitable mechanisms for gathering information might look like; and
- what the procedures should be for small managers to ‘opt-in’ to the AIFMD.
Generally, the objective of the Directive is to provide robust and harmonised regulatory standards for all alternative investment managers that fall within the scope of the AIFMD. In particular, it aims to enhance transparency towards investors and national authorities regarding managers’ investment management activities. These standards will also enable Member States to improve the macro-prudential oversight of
the fund sector and to take co-ordinated action if necessary to ensure the proper functioning of financial markets.
Consultation still to follow
Responses to this discussion paper will help ESMA in narrowing down its policy approach. Based on the responses to this discussion paper, ESMA will develop a formal proposal for possible implementing measures of the AIFMD in the summer of 2011. The proposal will be subject to a public consultation, the results of which will be used by ESMA to finalise its advice to the European Commission.