Good work takes time: AIFMD 2 and UCITS 6 are about to enter into force

With the publication of the directive amending the aifmd and the ucits directive, legislative amendments to the aifmd and the ucits directive reflecting industry and regulatory developments are about to enter into force. the revised regime will apply as from 16 april 2026, with the exception of measures concerning regulatory reporting, which will apply as from 16 april 2027.

On 26 March 2024, Directive (EU) 2024/927 amending Directives 2011/61/EU (AIFMD) and 2009/65/EC (UCITS Directive) as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds (Amending Directive) was published in the Official Journal of the EU.

More than 10 years after the AIFMD was adopted, legislative amendments to the AIFMD and the UCITS Directive are about to enter into force to reflect industry and regulatory developments in the alternative investment funds and UCITS sectors. For a summary of the new regime, read more here_

Entry into application

The Amending Directive will enter into force on 15 April 2024, which is 20 days following its publication. Member States will now have 24 months to implement the Amending Directive into their national legislation.

Therefore, Member States will be required to apply the amending measures by 16 April 2026. However, it should be noted that there is an exception to this: the measures implementing the reporting requirements (Article 24 of the AIFMD and Article 20a of the UCITS Directive) must be applied by 16 April 2027.

Fine-tuning the aifmd framework and targeted harmonisation with the ucits directive

The EU Commission published a legislative proposal to amend the AIFMD and the UCITS Directive in November 2021. Acknowledging that the AIFMD has worked well and has largely achieved its objectives of establishing an effective supervisory framework for AIFMs, thereby ensuring high levels of investor protection and facilitating the creation of the EU AIFM market, the EU Commission proposed fine-tuning the AIFMD framework and suggested a targeted harmonisation with the UCITS regime. For a summary of the legislative proposal, read more here_