On 23rd August 2011, European Securities and Markets Authority (“ESMA”) issued its second Consultation Paper in respect of implementing measures of the AIFMD. This complements the draft paper issued 13 July last (ESMA/2011/209).

The consultation paper “ESMA’s draft technical advice to the European Commission on possible implementing measures of the Alternative Investment Fund Manager’s Directive in relation to supervision and third countries” (ESMA/2011/270) sets out the proposals for rules on supervision and third country entities underlying the AIFMD.

The proposals cover 3 areas namely:

  • supervisory co-operation and exchange of information;
  • delegation of portfolio or risk management functions to third country entities; and
  • assessment of equivalence of third country depositary frameworks.

Responses were to be received by 23 September 2011. ESMA is aiming to submit its advice to the European Commission by the deadline of 16 November 2011.