On 26 February 2024, the European Council adopted the text of AIFMD II, previously approved by the European Parliament on 7 February 2024.

The new directive (“AIFMD II”) focuses on and amends the AIFM (Directive 2011/61/EU), and modifies UCITS by aligning certain requirements and making the regulatory approach more consistent between the two regimes.

The main topics covered by AIFMD II:

  • delegation regime
  • availability and use of liquidity management tools
  • loan origination
  • supervisory reporting requirements
  • white-labelling (or use of third-party AIFMs/management companies)
  • information on costs charged to investors,
  • alignment of the list of permitted functions/services that an AIFM/management company can perform

Next steps:

  • The directive was published in the EU’s official Journal on 26 March 2024 and will entered into force on 16 April 2024
  • AIFMD II must be implemented by EU Member States within 2 years from its entry into force and will become applicable from 16 April 2026, subject to specific transition provisions for existing loan originating AIFs and for the new reporting requirements