The Alternative Investment Fund Managers Directive (AIFMD) introduces new disclosure and reporting requirements for alternative investment fund managers (AIFM).
Article 23 of the AIFMD requires certain information to be disclosed to investors in alternative investment funds (AIFs) periodically:
- the percentage of the AIF’s assets which are subject to special arrangements arising from their illiquid nature
- any new arrangements for managing the liquidity of the AIF
- the current risk profile of the AIF and the risk management systems employed by the AIFM to manage those risks.
There are regular disclosures required in relation to leverage that apply to EU AIFs managed or Non EU AIFs marketed within the EU and which employ leverage.
Article 36 of Level 2 regulation requires information in respect of conflicts of interest identified to be disclosed and accessible continuously.
AIFMs which list AIFs on the ISE can utilise the ISE’s website and its company announcements office (CAO) to comply with AIFMD transparency requirements. A listing provides a cost efficient and easy to
use channel to communicate with both existing and potential investors.
For each listed AIF, an AIFM can publish the following information on the ISE’s website:
- Prospectus/offering document
- Updates to the prospectus or investor factsheets
- Annual report
- Net Asset Values.
An AIFM can also use the CAO to disclose:
- Any matters requiring immediate notification (such as the activation of gates, side pockets, changes to leverage levels, any change to depositary liability, suspension of redemptions)
- Periodic information to investors (such as new liquidity arrangements or changes in risk profile).
The CAO distributes all announcements to major data vendors, ensuring disclosure to investors and potential investors. All announcements made by listed funds are stored and available on the ISE’s website.