Memo #
34090

ICI Global Response to the European Commission on the AIFMD/UCITS Review Proposal
| Print

[34090]

March 28, 2022

TO: ICI Members
ICI Global Members SUBJECTS: International/Global
MiFID, EMIR, AIFMD, UCITS V RE: ICI Global Response to the European Commission on the AIFMD/UCITS Review Proposal

 

As we previously informed you, on November 25, 2021, the European Commission issued its proposal on four legislative files, collectively referred to as the "CMU Package."[1] As part of the formal process in the better regulation framework, the Commission accepted feedback until March 24, 2022.

ICI Global submitted the attached response to the Commission's proposal on the Alternative Investment Fund Managers Directive (AIFMD) and UCITS Directive, in which we made the following four key suggestions:

  • Any requirement for notifications by national competent authorities (NCAs) to the European Securities and Markets Authority (ESMA) regarding a management company's delegation arrangements should be based only on qualitative factors, and not on a quantitative trigger as currently implied by requiring notifications when "more" is delegated to third countries than retained. A backdoor quantitative trigger such as this would provide misleading and inconsistent information to ESMA.
  • To foster greater harmonization on supervision of delegation arrangements across Member States, NCAs and ESMA could reinstate a supervisory coordination network. This is a better tool than a notification requirement.
  • If policymakers need additional information on delegation arrangements, NCAs should share qualitative metrics.
  • On liquidity provisions, we support the broad array of liquidity management tools (LMTs) proposed by the Commission, but we strongly recommend against providing public authorities the discretion to activate or deactivate an LMT. We also caution against mandating the selection of an LMT or set of LMTs.

 

Eva M. Mykolenko
Associate Chief Counsel - Securities Regulation

endnotes

[1] See ICI Memorandum No. 33948, dated December 9, 2021, available at https://www.ici.org/memo33948.

    Attachments

    34090a.pdf