| Author (Corporate) | Council of the European Union, European Parliament |
|---|---|
| Series Details | 2024/927 |
| Publication Date | 26/03/2024 |
| Content Type | Blog & Commentary, Legislation, News, Policy-making |
Summary:Directive (EU) 2024/927 - adopted by the co-legislators on 13 March 2024 - introducing amendments to Directive 2011/61/EU and Directive 2009/65/EC as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds (AIFs). This is a text with EEA relevance. Further information:Directive 2011/61/EU - also known as the Alternative Investment Funds Manager Directive (AIFMD) - was adopted in 2011 as part of the policy response to the global financial crises, which exposed weaknesses and vulnerabilities in certain fund activities that could amplify risks to the broader financial system. The AIFMD sought a coherent supervisory approach to the risks that the activities of the AIFs may generate or convey to the financial system. It also aimed to provide high-level investor protection while facilitating the integration of AIFs in the EU market. AIF managers (AIFMs) are required to manage risks and ensure adequate transparency. The AIFMD became a relevant pillar of the Capital Markets Union (CMU). The European Commission reviewed the application and scope of the AIFMD as mandated by the Directive itself. The amendments seek to address the outcome of that assessment. They harmonise the rules related to funds that give loans to companies, and ensure that there is adequate information and coordination among EU supervisors as regards delegation rules allowing fund managers to source expertise from third countries. The Commission considered that a number of issues highlighted in the AIFMD review were equally relevant for Directive 2009/65/EU, also known as the Undertaking for Collective Investment in Transferable Securities (UCITS) Directive. The draft law was adopted by the European Commission on 25 November 2021 as part of a package of initiatives related to Capital Markets Union (CMU). The Council of the European Union adopted its general approach to the text on 17 June 2022. The plenary of the European Parliament endorsed a negotiating position on 15 February 2023. An informal agreement between the co-legislators on a compromise text for this file was reached on 20 July. This was formally endorsed by the Parliament on 7 February 2024 and by the Council on 26 February. The Act was signed by the co-legislators on 13 March 2024 and published in the Official Journal on 26 March 2024. |
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| Source Link | http://data.europa.eu/eli/dir/2024/927/oj |
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| Subject Categories | Economic and Financial Affairs, Internal Markets |
| Subject Tags | Capital Markets Union [CMU], Financial Services |
| International Organisations | European Union [EU] |
