Lawyers attack AIFMD technical advice

Author: | Published: 22 Nov 2011
European Securities and Markets Authority (Esma)’s technical advice on the Alternative Investment Fund Manager’s Directive (AIFMD) is generally helpful but may lead to trouble in the private placement market and confusion around member states of reference, according to European lawyers.

There are also concerns about the impact of the rules on depositary managers.

While Esma’s technical advice to the EC, released on November 16, doesn’t contain wholesale changes to the level one text of AIFMD, it does clarify a number of issues including depositary liability, transparency requirements, leverage limits and third-party equivalence.

James Modrall, a partner at Cleary Gottlieb Steen & Hamilton in Brussels, welcomed the clear statements about the need for the rules to be applied proportionally. However, he noted that Esma didn’t give clear indications about when particular rules can be ignored when they’re inappropriate.

Modrall also welcomed the removal of a heavily...