On October 5th 2017 ESMA added three new questions to its AIFMD Q&A. Regarding the impact of SFTR on alternative investment funds, ESMA adopts the same approach as for UCITS (see above). One difference being that for AIFMs, the information have to be disclosed to investors only in each annual report of the relevant AIF.
Regarding disclosure requirements around remuneration paid by the AIFM, ESMA clarified that the remuneration-related disclosure requirements under Article 22(2)(e) of the AIFMD also apply to the staff of the delegate of an AIFM to whom portfolio management or risk management activities have been delegated. ESMA provides with two different ways to comply with this requirement:
- Where the delegate is subject to regulatory requirements on remuneration disclosure that are equally effective as those under AIFMD, the AIFM should use the information disclosed by the delegate;
- In other cases, appropriate contractual arrangements should be put in place allowing the AIFM to receive at least information on the total amount of remuneration for the financial year split into fixed and variable, paid by the AIF and/or the AIFM to the identified staff of the delegate - and number of beneficiaries, and, where relevant, carried interest, which is linked to the delegated portfolio. Disclosure should be done on a prorated basis for the part of the AIF’s assets which are managed by the identified staff.
In both situations the disclosure may be provided on an aggregate basis i.e. by means of a total amount for all delegates of the AIFM in relation to the relevant AIF. ESMA further clarified that it is not possible to insert in the annual report a link to another document in order to comply with the disclosure requirements of Article 22(2)(e) and (f) of AIFMD.
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