ECON publishes report on amendments to AIFMD and UCITS directive

On 9 February 2023 the ECON published a report setting out its draft compromise position on the European Commission’s proposal for a directive amending AIFMD and the UCITS directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services, and loan origination by alternative investment funds.

ECON adopted the report on 24 January 2023. According to Parliament's legislative procedure file the report has been tabled for discussion in plenary and is awaiting Parliament's position at first reading. 

Meanwhile ECON has also voted to enter into interinstitutional negotiations with the Council of the EU. The Council agreed its General Approach on the Commission proposal in June 2022, and trilogues between the Parliament and Council, facilitated by the Commission, are due to commence shortly, with the first trilogue meeting scheduled for 8th March 2023.  There is no fixed timeframe for how long those negotiations could take, and given there are still some areas of divergence between the various positions, there is opportunity for industry participants use this time to engage in further discussions with the institutions.

Next steps

Once completed, it is envisaged that AIFMD II would need to be implemented into national law in all EU Member States, two years after coming into force (i.e., after publication in the Official Journal). This will probably now be 2025 at the earliest.