The Alternative Investment Management Association (AIMA) and its private credit affiliate the Alternative Credit Council (ACC) have welcomed the publication of the updated Alternative Investment Fund Managers Directive (AIFMD) in the Official Journal of the EU.
The publication marks an important milestone for both organisations following their longstanding engagement with the EU institutions. As was the case with the high-level political agreement which was reached last summer, both believe the final updated Directive secures regulatory stability for the EU alternative investment industry.
Ina joint press statement, the organisations said: “In particular, we are pleased to see the cross-border lending passport now officially enshrined in EU law, something that AIMA & ACC have promoted throughout the legislative process.”
AIMA and ACC say the manner in which the EU institutions approved the review underlines the significance of AIFMD as a framework and by extension the alternative investment industry in providing financing throughout the EU. In the Council, all 27 Member States voted in favour of approving the review, while in the European Parliament, a strong majority of Members of the European Parliament (MEPs) gave their endorsement.
The Directive will now enter into force on 15 April 2024 and Member States have until 16 April 2026 to transpose the Directive into national law.
Jiri Krol, Deputy CEO and Global Head of Government Affairs, AIMA, said: “We welcome most of the new rules on delegation, liquidity risk management and passporting for loan origination funds as relatively sensible. Some restrictions, such as leverage limits on loan funds, are difficult to justify, but we have worked closely with policymakers to ensure they are better defined and calibrated than the original proposals. As usual, it’s a mixed bag and we hope the positive elements will outweigh the negatives. This updated framework will provide our members with greater certainty on the future regulatory framework and allow them to focus on delivering returns to investors and capital to the economy.”
