On 13 July 2011 the European Securities and Markets Authority (“ESMA”) published a consultation paper setting out its proposals for the detailed rules underlying the Alternative Investment Fund Managers Directive.

The ESMA consultation sets out ESMA's proposals for advice to the European Commission for Level 2 regulations under AIFMD and also contains its commentary on the proposals. The Consultation also contains an Annex which lists 72 questions posed by ESMA to market participants and other "external stakeholders." It follows on from the Discussion Paper that ESMA issued on April 15.  

Interested parties have until 13 September 2011 to give their feedback to ESMA. ESMA will then finalize its advice to the European Commission in time for submission by November 16 2011. The Commission will convert ESMA’s technical advice into binding legislation which it is expected to adopt by mid-2012.