European Commission source says AIFMD will be published in weeks and blames lobbying for delays
A source close to the European Commission has said AIFMD will be published before year-end and blamed “relentless lobbying” for the delays.
Several industry sources had also said there were rumours a new Directive could be passed to delay implementation of AIFMD. This was rejected by the source, who said “it was not necessary and there is plenty of time (to get compliant), especially as the content of Level 2 is no secret.” He said AIFMD would be published in a matter of weeks.
The European Commission has been criticised for not publishing the proposals in good time by industry participants, particularly given the amount of work required to meet compliance deadlines. “Delays are not our fault but this relentless lobbying on who should be the manager of an AIF. It seems that of all the candidates, (which include) the investment company, board of directors or the management company, nobody wants to take on the responsibility,” said the source, in an email.
The source also slammed depositaries – many of whom have expressed frustration about the clarity of the rules. Speaking at ALFI Luxembourg, several depositaries including BNP Paribas and BNY Mellon, complained rules requiring depositaries to implement as opposed to ensure cash flow monitoring, would ramp up operational costs. Other depositaries rued the lack of time they have to build systems and sign legal agreements.
This was dismissed by the source. “Depositaries had years to prepare. Most of their responsibility and their liability result from Level 1. If they claim otherwise, this is because they did not obtain a watered down version of liability based only on fault and negligence at Level 2,” said the source.