Updated AIFMD Q&As
The European Securities and Markets Authority (ESMA) has published an updated version of its Q&A paper on the application of the Alternative Investment Fund Managers Directive (AIFMD). This publication was released on 21 July 2015, with the new Q&As appearing in Sections III and IX of the document. These sections deal with reporting to national competent authorities under Articles 3, 24 and 42 as well as the calculation of the total value of assets under management.
Points covered by additional Q&As
Reporting to national regulators
- When a non-EU AIFM reports information to the national competent authorities of a Member State under Article 42, only the AIFs marketed in that Member State have to be taken into account for the purpose of the reporting.
- When Member States apply ESMA’s opinion on collection of additional information under Article 24(5) of the AIFMD, AIFMs should also report information on non-EU master AIFs not marketed in the EU that have either EU feeder AIFs or non-EU feeder AIFs marketed in the Union under Article 42.
- When converting the total value of assets under management into Euro, AIFMs should in the first instance use the rounded values of the AIFs in the base currency of the AIFs. Then, AIFMs should divide these rounded values by the corresponding value of one Euro into the base currency of the AIFs. By way of example, if the base currency of an AIF, reporting for 31 March 2015, is the US dollar and is using the ECB rate, AIFMs should divide the rounded value in US dollar of the AIF by 1.0759 which was the spot rate on that date.
- ESMA confirmed that AIFMs should include AIFs created during the reporting period in the total value of assets under management of the AIFM for that reporting period.
Calculation of the total value of assets under management
- ESMA clarified that, when AIFMs are calculating the total value of assets under management, they should include short non-derivative positions. According to Article 2(1)(b) of the implementing Regulation, AIFMs should include assets acquired through leverage. Where a short sale occurs with assets being received, AIFMs should include the assets received in the calculation of the total value of assets under management.
Delay in opinion on the extension of the AIFMD passport to non-EU entities
In accordance with the AIFMD, ESMA was due to issue an opinion to the European Commission, Council and Parliament on the extension of the AIFMD passport to non-EU AIFMs and non-EU AIFs by 22 July 2015. ESMA advised that it is still in the process of finalising its opinion and advice and intends to publish them during the week beginning 27 July rather than on 22 July as previously expected.