European Commission Adopts AIFMD Level 2 Rules

Background

On 19 December the European Commission issued the long-awaited Level 2 rules (the Rules) relating to the Directive on Alternative Investment Fund Managers (AIFMD).

The Rules supplement certain elements of AIFMD and cover:

• conditions and procedure for the determination and authorisation of alternative investment fund managers (AIFMs), including the capital requirements applicable to AIFMs;
• operating conditions for AIFMs, including rules on remuneration, conflicts of interest, risk management, liquidity management, investment in securitisation positions, organisational requirements, rules on valuation;
• conditions for delegation;
• rules on depositaries, including the depositary's tasks and liability;