EU AIFMs managing open‑ended AIFs have a harmonised toolkit of liquidity management tools. Managers must select at least two tools (or one for money market funds where the derogation applies) after assessing the fund’s strategy, liquidity profile, and redemption policy. Policies should outline activation and deactivation of tools, with enhanced investor disclosure and NCA engagement when deploying tools. Suspensions and side pockets are expressly contemplated. NCA powers now permit direction to use suspensions in exceptional circumstances following AIFM consultation. ESMA receives an extraterritorial intervention power to require suspension by non‑EU AIFMs where there is a cross‑border/EU dimension.
Through authorisation and ongoing supervision, AIFMs need to provide more granular information to NCAs on human and technical resources, emphasising delegation arrangements and the substance dedicated to delegated activity oversight.
Authorised AIFMs may originate loans on behalf of AIFs and service SSPEs and may provide credit servicing in line with the Credit Servicers and Credit Purchasers framework. Additional to collective portfolio management/existing MiFID ancillary services, AIFMs may offer benchmark administration under the Benchmark Regulation. The previous requirement to hold individual portfolio management permission as a precondition for providing MiFID ancillary services is removed. AIFMs may provide to third parties other functions they already perform for their own funds or clients, such as IT services.
AIFMD 2.0 enhances delegation transparency. AIFMs must have ongoing reporting to NCAs covering delegates, resources allocated to oversight, and percentages/amounts of assets under delegation.
AIFMD 2.0 introduces limited cross‑border passporting allowing, in defined cases, a depositary established in one Member State to service an AIF in another. Central securities depositories are carved out of the custody network. Where they provide custody services, this is considered a delegation of custody functions.
AIFMD 2.0 compliance may trigger Article 10 notice filings or affect management/marketing passport notifications. Managers should factor this into implementation plans/timelines.
The third‑country framework is strengthened. Non‑EU AIFMs and AIFs face upgraded minimum criteria and cooperation requirements in AML/CFT, AEOI and tax matters.
AIFMD 2.0 materially increases the granularity of Annex IV reporting for both EU and non‑EU AIFMs. Current disclosures on “principal markets” and “main instruments” should shift toward all markets and instruments, potentially requiring regular full portfolio instrument submissions. ESMA will specify the format and content through implementing measures. New delegation arrangement reporting is introduced.
