The directive amending the AIFM Directive (directive 2011/61/EU on alternative investment fund managers) and the UCITS Directive (directive 2009/65/EC on undertakings for collective investment in transferable securities) (the “AIFMD II”).

On 7 February 2024, the European Parliament adopted the directive amending the AIFM and UCITS Directives.

The AIFMD II has been introduced in November 2021 in order to make some changes to the AIFM Directive based on the experience and lessons learned from the AIFMD. UCITS Directive also needed alignment on certain points where there are no reasons to maintain differences. After the confirmation of the final compromise text with a view to agreement on 6 November 2023, the proposed text has been submitted to the European Parliament and adopted on 7 February 2024. 

Key amendments of the AIFMD II:

• Additional precisions on substance requirements,
• Clarification of rules applicable to AIFMs that delegate their functions to third parties,
• Facilitation of the use of liquidity management tools across the European Union,
• Inclusion of central securities depositaries into the custody chain,
• Optimization of supervisory data collection,
• Harmonization of rules for AIFMs managing loan originating AIFs,
• Improving the cross-border access to depositary services,
• Extension of permitted activities of the AIFM and the persons that may benefit from the AIFM services,
• Integration of ESG parameters,
• Additional transparency requirements for AIFMs, and
• Clarifications in respect to AML and tax conditions for third country entities wishing to access internal market.

What’s next?

The Directive (EU) 2024/927 was published in the European Union’s Official Journal on 26^th March 2024 and will enter into force 20 days after such publication. It will then have to be implemented within 24^th month by the EU Member States into national legislations.

For more information, we invite you to read our full article, and for any assistance on this topic, do not hesitate to contact Iya MARTKOPLICHVILI, our Investment Funds expert.