AIFMD Legislative Proposal Analysis & French Presidency Priorities

On 25 November 2021 the European Commission published a legislative proposal amending the Alternative Investment Fund Managers Directive (AIFMD). The proposal is focused on delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services, and loan origination.

We have prepared an analysis of the proposals to assist our advocacy efforts and we hope you find the analysis helpful. We are and will continue to meet and engage with policy makers sharing with them our thoughts on the proposals and will continue to monitor developments as the discussion/proposals evolve.

Isabel Benjumea MEP (EPP, Spain) will take on the lead role (rapporteur) on AIFMD in the European Parliament. The centre-left group has appointed Paul Tang MEP (S&D, Netherlands) as their shadow rapporteur. We are awaiting confirmation of the MEPs from the centrist Renew Europe and Green political groups.

On the Member State side, financial attaches will meet under the new French Presidency for their first AIFMD specific discussion on 26 January. Meetings were held this week on MiFIR, ELTIF, ESAP, DORA and Solvency II.

The French Presidency has signalled their intention to seek a Council General Approach on AIFMD, ELTIF and ESAP at the 24 May ECOFIN and on the banking package, Solvency 2, AML Package and MiFIR at the 17 June ECOFIN. If this AIFMD timeline was followed we would expect trilogue negotiations to begin after the summer break with a possible final agreement by the end of the year. However, this assumes that the legislation passes smoothly through the process and no substantial controversial issues are raised.