ESMA Publishes Letter to the European Commission on the AIFMD Review
Published 4 September 2020
On 19 August 2020, ESMA published a letter to the Commission, outlining areas it should consider during the forthcoming review of the AIFMD. ESMA encourages the Commission to support the areas identified in the letter in order to enhance the supervision of alternative investment fund managers in Europe and to improve the overall effectiveness and soundness of the AIFMD.
ESMA’s letter includes recommendations for changes in a number of areas, including:
- Harmonisation of the AIFMD and the UCITS regimes;
- Increasing digitalized communication;
- Making additional liquidity management tools available to all AIFMs in all EU member states;
- Amending leverage calculation methodologies;
- Extending AIFMD supervision to sub-threshold alternative investment fund managers; and
- Recommending significant changes in AIFMD reporting regime and data use, including requiring all AIFMs and the funds that they manage to have their own Legal Entity Identifier and implement ESG metrics into mandatory reporting.
The letter is available here.
Next Step: It is expected that the Commission will publish a proposal to amend the AIFMD in autumn 2020 and initiate a consultation prior to the adoption of legislative acts. We will keep you posted!