AIFMD requires AIFMs to make pre-sale and periodic disclosures. AIFs must provide an annual report.
AIFMD requires pre-sales and period disclosures as well as an annual report.
Alternative investment fund managers (AIFMs) are required to make available certain information to investors before they invest in an alternative investment fund (AIF). Thereafter, certain periodic disclosures must be made. The directive details the disclosures required but does not prescribe the format for delivering this information.
The pre-sale disclosures include:
Periodic disclosures include:
Each AIF must make available an annual report, prepared in accordance with the accounting standards in its Member State of establishment and audited by an approved auditor. The annual report must also provide information on the total amount of remuneration, split between fixed and variable components, paid by the AIFM to its staff and the aggregate amount of remuneration broken down by senior management and risk takers.
AIFMs are also required to provide extensive and regular reporting to national regulators on each AIF managed. The national regulators pass on aggregated information to ESMA. The frequency of reporting is quarterly, with semi-annual reporting for AIFMs with AIFs of less than €1 billion assets under management where no one AIF managed is over €500 million.
The reports include:
The regulation specifies two mandatory methods for calculating leverage and prescribes the format of the report. European Securities and Markets Authority (ESMA) has issued various FAQs, providing technical answers to various questions arising from the industry during implementation.
Ms Julie Patterson