A Step Closer To AIFMD 2.0

On 20 July 2023, the European Council and European Parliament announced their provisional agreement on proposed amendments to the Alternative Investment Fund Managers Directive (commonly referred to as "AIFMD 2"), which will impact the management and marketing of AIFs in the European Economic Area.

The agreement concludes protracted negotiations over a targeted set of enhancements to the original AIFMD framework, as detailed in our update, AIFMD 2.0: European Commission Publishes Legislative Proposals. While the final text will not be available for some time, the provisional agreement has settled key aspects of certain of the most contentious proposals.

Delegation

Revisions to the delegation framework will include enhanced substance / oversight and reporting requirements for AIFMs in respect of delegated activities, both on authorisation and on a periodic basis. Although this may increase the administrative burden and costs for AIFMs, importantly the measures