AIFMD II: Navigating the Changes and Leveraging Opportunities

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:

They breathe success into every project. Through the glass shot of a group of colleagues working together in an office.

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Alternative Investment Fund Managers (AIFMs) will be required to provide more detailed information to investors, including on fees, performance, and risks.

AIFMs will need to implement more robust governance and risk management frameworks.

AIFMs will face new restrictions on how they can market and distribute their funds.

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:

Business adviser analyzing financial figures denoting the progress in the work of the company.

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Identify the areas where your business will be affected by AIFMD II and assess the potential impact.

Assist with implementing the necessary changes to your business processes, systems, and controls.

Provide training and education programs to help your staff understand the new requirements.

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.