FRANCE: AMF Opens AIFM Pre-Agreement Window and Publishes Accompanying Guide for Existing Management Companies

Tuesday April 16 2013

To help existing management companies anticipate the implementation of the Alternative Investment Fund Managers Directive (AIFMD), the Autorité des marchés financiers (AMF) has published a guide which aims to respond in a concrete manner to any questions that may arise.

The publication of this document is also part of a proactive approach taken by the AMF to increase the attractiveness and competitiveness of the French asset management industry. From the publication of this document, firms are given the opportunity to file with the AMF an application for approval as an AIFM. This will enable them to have a commercial offering aimed at professional investors, free to operate throughout Europe from the entry into force of the text. The Directive must be transposed into national laws by 22 July 2013.

Designed as a manual for the attention of existing management companies, the guide contains practical advice to obtain approval under the AIFMD. It shall also be accompanied by the new schedule of agreement of portfolio management companies.

The guide addresses the following issues:

• It defines the people affected;
• Addresses the issue of thresholds for management companies and their existing calculations;
• It discusses business opportunities offered by the Directive (passport management, passport marketing, possible new opportunities for managers);
• It lists the new obligations arising from the Directive relating to liquidity management, delegation function, investment in securitization positions, regulatory reporting and leverage, evaluation, compensation;
• It sets out the time frame for compliance with the Directive;
• Details the activities and services authorised by the Directive; and
• It is accompanied by a time table for the approval process for the AIFM.

Please see the above link for more details.