On July 21, the European Securities and Markets Authority (ESMA) published an updated questions and answers (“Updated Q&A”) on the application on the Alternative Investment Fund Managers Directive (AIFMD). The Updated Q&A includes new information on reporting to national competent authorities and the calculation of the total value of assets under management (AUM), as discussed below.
The Updated Q&A provides guidance on how alternative investment fund managers (AIFMs) should convert the total value of AUM into Euro. An AIFM should first use the rounded values of the alternative investment funds (AIFs) it manages in the base currency of the AIF. These rounded values should then be divided by the value of one Euro into the base currency of the AIFs. Additionally, the Updated Q&A clarifies that the total value of AUM at the level of the AIFM at the reporting date will not be the sum of the values of AUM of the AIFs reported for that reporting period. This is because AIFMs should not report any information of AIFs for the reporting period during which the AIFs were created, but should include such AIFs in the total value of AUM of the AIFM for that reporting period. Additionally, the Updated Q&A states that short non-derivative positions should be included in the total value of AUM.
Regarding reporting, the Updated Q&A provides clarification that a non-EU AIFM is required to report to the applicable national competent authority of a member state not only the AIFs marketed in that member state as required under Article 42 of the AIFMD, but also—applying Article 24(5) of the AIFMD—the non-EU master AIFs not marketed in the European Union that have either EU feeder AIFs or non-EU feeder AIFs marketed in the European Union.
A copy of the Updated Q&A on the application of the AIFMD can be found here.