ESMA’s Securities and Markets Stakeholder Group has published its advice on ESMA's draft technical advice to the Commission on possible implementing measures of the Alternative Investment Fund Managers Directive (AIFMD) in relation to supervision and third countries. It highlights some areas of the draft ESMA advice that might have an adverse impact on the balance between market stability and investor protection on the one hand, and the proportionality and diversity of investment opportunities on the other hand. It notes the advice is not always consistent with the Level 1 Directive, particularly in the areas of third country equivalence and operating conditions relating to risk management, due diligence or internal organisation requirements for managers. (Source: ESMA Stakeholder Group Advises on AIFMD Level 2)