On 15 April 2024, Directive 2024/927/EU (AIFMD II) entered into force, bringing significant changes to the Alternative Investment Fund Managers Directive (AIFMD) and, to a relevant extent, the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive. These changes have far-reaching implications for stakeholders in the financial services industry, particularly funds, fund managers, depositaries, and fund administrators.
Key Changes Introduced by AIFMD II
AIFMD II introduces several key changes, including:
Enhanced Transparency and Reporting Requirements:
Alternative Investment Fund Managers (AIFMs) will be required to provide more detailed information to investors, including on fees, performance, and risks.
Strengthened Governance and Risk Management:
AIFMs will need to implement more robust governance and risk management frameworks.
New Rules for Marketing and Distribution:
AIFMs will face new restrictions on how they can market and distribute their funds.
Changes to the Depositary Regime:
Depositaries will have additional responsibilities, including oversight of the valuation process and the safekeeping of assets. Importantly, the revised text allows an Alternative Investment Fund (AIF) to appoint a depositary domiciled in another Member State, subject to certain conditions evaluated by national competent authorities on a case-by-case basis.
Navigating the Changes with KPMG
KPMG's team of experienced professionals can help you navigate the changes introduced by AIFMD II. We offer a range of services, including:
Gap Analysis and Impact Assessment:
Identify the areas where your business will be affected by AIFMD II and assess the potential impact.
Implementation Support:
Assist with implementing the necessary changes to your business processes, systems, and controls.
Training and Education:
Provide training and education programs to help your staff understand the new requirements.
Ongoing Compliance Support:
Offer ongoing support to ensure that your business remains compliant with AIFMD II.
Leveraging the Opportunities
While AIFMD II presents challenges, it also creates opportunities for fund managers. For example, the new rules on marketing and distribution could open up new markets for your funds. Additionally, the enhanced transparency and reporting requirements could help attract new investors.
KPMG can help you identify and capitalise on these opportunities. We can work with you to develop a strategy that will help you achieve your business goals in the post-AIFMD II environment.
For more information on how KPMG can support your compliance efforts, contact us.
