AIFMD 2.0: European Commission Publishes Legislative Proposals

On 25 November 2021, the European Commission ("Commission") published its much-anticipated legislative proposals (the "Proposals") to amend the Alternative Investment Fund Managers Directive ("AIFMD").

The Proposals form part of a legislative package in which the Commission seeks to deliver on several key commitments in the EU's Capital Markets Union ("CMU") plan.  The suggested changes cover key topics including delegation; liquidity risk management; loan origination; marketing and depositary services in the context of alternative investment funds ("AIFs").

The Proposals also contain similar changes to the UCITS Directive to align delegation, liquidity risk management and regulatory reporting more closely with AIFMD, but the focus of this update is on the proposed AIFMD changes.