Irish Funds Welcomes Provisional Agreement on AIFMD Review

• Irish Funds welcomes yesterday’s provisional political agreement on AIFMD.

• The provisional agreement demonstrates the recognition of the advantages provided by the existing AIFMD framework and the considerable value it brings to investors through the delegation model.

• Irish Funds strongly supports the further strengthening of investor protection, through amendments to further harmonise reporting standards across the EU. 

Irish Funds welcomes the provisional political agreement reached late last night on the legislative review of the Alternative Investment Fund Managers Directive (AIFMD). Since the European Commission published the legislative proposal in November 2021, engagement with EU policy makers on AIFMD has been Irish Funds’ top priority. We strongly support the approach taken by the European Parliament and Council in preserving the fundamental framework of AIFMD, while introducing important amendments to enhance investor protection and strengthen regulatory supervision.

Robust EU negotiations on AIFMD, alongside ongoing engagement with industry, has resulted in the recognition from EU policy makers that the existing AIFMD framework successfully created a harmonised and stringent regulatory framework for AIFMs, delivering positive outcomes for investors, particularly in the context of the delegation model, which creates enhanced efficiency and scale, as well as access to specialised investment expertise, resulting in better outcomes and cost savings for investors.

Irish Funds also welcomes amendments to ensure both the levelling up and harmonisation of the availability of liquidity management tools (LMTs) across Europe, which ensure that  the activation and use of LMTs remains the responsibility of the manager, supporting the work currently underway at a global level on macro-prudential rules for investment funds and strengthening financial stability by providing a full toolkit to asset managers to use during periods of market stress.

Irish Funds Chief Executive Pat Lardner said: ‘"As one of the world’s largest investment fund centres, we have a responsibility to ensure that the legislative and regulatory landscape that our members operate in continues to deliver the best outcomes for investors. As such, we fully support the agreement on AIFMD announced today, as it demonstrates an acknowledgment of the advantages provided by the existing AIFMD framework and the considerable value it brings to investors through the delegation model. Ireland, with its best-in-class regulatory environment, wholeheartedly welcomes the proposed amendments aimed at enhancing harmonization and establishing robust regulatory reporting standards. These positive developments will undoubtedly reinforce investor protections, not only within our borders but also across the entire European Union.’’