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Alternative Investment Fund Managers Directive (AIFMD)

Level:
Intended audience:
Solution Store:

Advanced
Anyone providing investment services
Click here to access the templates

Introduction

The Alternative Investment Fund Managers Directive 2011/61/EU (AIFMD) is an EU directive which covers all non-UCITS funds for hedge funds, private equity, real estate funds, and other "Alternative Investment Fund Managers" (AIFMs) in the European Union in order to monitor and regulate their activity.

The Directive requires all covered AIFMs to obtain authorisation, and make various disclosures as a condition of operation. 

AIFMs, who have a minimum initial capital of €300,000, have needed to seek authorisation from their local competent authorities since 22 July 2014, providing the following information:

* Employee and Shareholder details
* Remuneration policies and practices
* Details of any outsourced activities and third party relationships
* Programme of activity
* Details of all of the AIFs they intend to manage

Authorized AIFMs must publish annual, quarterly or monthly reports depending on their size. This must include the following:

* Investment strategy and objectives
* All fees and charges
* The depositary and auditor details
* Prime broker details
* Legal details of the contract

AIFMs must also disclose when they acquire or dispose of equity in an unlisted EU company.

The rules include the fact that each AIF must have a single depositary, which must be in the same member state as the AIF. AIFMs can not invest client’s portfolios in shares of their own managed AIFs, their remuneration packages must not encourage excessive risk taking, they must adopt procedures that allow them to monitor liquidity risk and perform appropriate valuation procedures at least once a year, independently from the portfolio management system

 

Key Benefits

Here are the key benefits of the RequirementONE AIFMD Solution.

Simpler Implementation

The Directive is broken into individual records which help with gap analysis to ensure complete coverage.

Collaboration

The Framework can facilitate internal and external collaboration through a common understanding and shared goals.

Mapping Controls and Policies

Individual controls and policies may apply to numerous frameworks. These can be maintained as an interlinked set of procedures to avoid duplication of effort.

A Single Point of Truth

Each compliance element is stored as a record and can be updated, commented, controlled and audited individually. Data is accessible to all stakeholders without version control issues.

Dependency Linking

All links and interfaces can be defined and maintained showing dependencies between various policies.

Reporting

Track the progress of AIFMD compliance. In-line analytics highlight gaps in coverage, traceability of changes and project status.

Auditing

Internal and External audit teams benefit from a specialized interface with full visibility to review and evaluate procedures.

Typical Use Cases

Here is a typical, but not exhaustive, list of roles and associated use cases that would interact with this solution.

Role Use Case
End users
  • Consume the latest policies, controls and procedures
Compliance team
  • Use the framework as a guide to implement the relevant controls and policies
  • Manage and report against compliance status
Executive
  • Roadmap to achieve or improve AIFMD Compliance

Templates

These apps and templates are used for the solution.

What Description
Specification 
The Alternative Investment Fund Managers Directive (AIFMD) A specification containing AIFMD, which can be used to ensure that all policies, controls and procedures are correct.

GET STARTED
1) Download the "The Alternative Investment Fund Managers Directive (AIFMD)" specification from the Solution Store
2) For each AIFMD record:
* Review it, set the Reviewed custom field to "Yes". If it needs to be reviewed later, set it to "No"
* If you need to provide a report on the record, set the Record custom field to "Yes", if not "No".
* If the record needs to be included in your policies, controls and procedures, set the Internal Documentation custom field to "Yes", else "No".
2) Link relevant Policy, Control and Procedure records to each record.
3) Use filters and reporting to identify gaps
4) If there are people in the organization who need to be informed, but do not have access to RequirementONE, Export the completed document to Word.

ESMA: questions and answers on application of the AIFMD A specification containing the ESMA Q & A on the application of the AIFMD, which can be used to ensure that all policies, controls and procedures are correct.

GET STARTED
1) Download the "ESMA: questions and answers on application of the AIFMD" specification from the Solution Store
2) For each AIFMD record:
* Review it, set the Reviewed custom field to "Yes". If it needs to be reviewed later, set it to "No"
* If you need to provide a report on the record, set the Record custom field to "Yes", if not "No".
* If the record needs to be included in your policies, controls and procedures, set the Internal Documentation custom field to "Yes", else "No".
2) Link relevant Policy, Control and Procedure records to each record.
3) Use filters and reporting to identify gaps
4) If there are people in the organization who need to be informed, but do not have access to RequirementONE, Export the completed document to Word.

 

 

Getting started

  1. Select an existing, or create a new project
  2. Click on the Solution Store, and select the AIFMD Templates
  3. Once you have the templates, add your custom data and work through the plan.

Additional notes

Combine AIFMD with other templates such as MiFID, MiFIR and ESMA to provide a holistic Compliance solution for your organization. 

Related links

Questions or Comments?

Respond to this post if you want to comment on the template or ask the author a question.

 

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