Written by Issam hallak (3rd edition, updated on 15.09.2023).
Two European Union (EU) directives regulate the EU collective investment funds industry: the Directive relating to undertakings for collective investment in transferable securities (UCITS) and the Alternative Investment Funds Manager Directive (AIFMD). The UCITS Directive, which covers mutual funds, lays down uniform rules, allowing them to be offered cross-border, while the AIFMD, which covers hedge funds and private equity, lays down the rules for authorising, supervising and overseeing the managers of such funds. While reviewing the application of the scope of the AIFMD (as mandated), the European Commission considered that a number of issues highlighted in the AIFMD review were equally relevant for the activities of UCITS. As a result, it proposed to amend both directives, to better align their requirements.
The Council agreed on its general approach in June 2022. Within the European Parliament, the file was assigned to the Committee on Economic and Monetary Affairs (ECON). It adopted its report in February 2023, and Parliament confirmed the committee’s decision to enter into interinstitutional negotiations in plenary the same month. The co-legislators reached a provisional agreement in July 2023, which now needs to be formally adopted by the two institutions.
- September 2023: Amendments to AIFMD and UCITSD (3rd edition)
|Proposal for a Directive of the European Parliament and of the Council amending Directives 2011/61/EU and 2009/65/EC as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds|
|Committee responsible:||Economic and Monetary Affairs (ECON)||COM(2021) 721|
|Rapporteur:||Isabel Benjumea (EPP, Spain)||2021/0376(COD)|
|Shadow rapporteurs:||Paul Tang (S&D, the Netherlands)|
Billy Kelleher (Renew, Ireland)
Mikuláš Peksa (Greens/EFA, Czechia)
Gunnar Beck (ID, Germany)
Eugen Jurzyca (ECR, Slovakia)
José Gusmão (The Left, Portugal)
|Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)|
|Next steps expected: Final first-reading vote in plenary|