The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

AIFM Level 1 Directive Still Not Fit for Purpose in Spite of Delay, say Kinetic Partners

Level 1 of the AIFM Directive, which was due to be published in Q1 2011, was finally published by the EU on 27th May. It was hoped that the delay was an indication of the level of improvements that were needed and that the final published text would have addressed all the deficiencies present in the previous drafts. This was not the case. Andrew Lowin, Director in Regulation and Risk, from financial services consultancy Kinetic Partners comments:

“The delay in AIFMD’s publication has been wasted; there are still significant deficiencies in level 1 of the AIFM Directive and currently it is still not fit for purpose. What is now clear is that the deadline for implementation of level 1 is 16 June 2013. This also means that, if ESMA were to endorse them, that third country passports would have to be implemented in member states by 16 June 2015 and Private Placement Legislation repealed by 16 June 2018.

There is, however, a grey area over the issue of third country passports with no one making positive recommendations towards them for fear that they become a ‘poison chalice’. Level 1 does not address the issue of third country passports, leaving it for ESMA to deal with it in level 2 – they may also brush over it. If this is the case, Private Placement Legislation will remain at the member states’ discretion and the AIFM Directive will not have the power to repeal it.

In short, whilst we welcome finalisation of the AIFM level 1 directive, Kinetic Partners believes that many of the major issues have been side-stepped and that a lot of ground will have to be made up in level 2.”

Related content

WEBINAR

Recorded Webinar: Fighting fraud and financial crime with RegTech

Financial fraud and crime continue to escalate causing significant damage to companies, countries and the global economy despite enormous efforts by firms and organisations in the financial services sector to identify and expel bad actors. As these bad actors use increasingly sophisticated techniques to break into financial institutions and extract both money and data, so...

BLOG

BayernLB Selects Broadridge for SFTR, EMIR/MiFIR, MMSR Trade and Transaction Reporting

Bayerische Landesbank (BayernLB) has selected Broadridge Financial Solutions’ platform to meet its trade and transaction reporting obligations across a range of regulations including SFTR, EMIR and MiFIR, as well as the European Central Bank’s money market statistical reporting (MMSR) requirements. The deployment – is aimed at streamlining and consolidating all of its regulatory trade reporting...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that brings together an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...