AIFMD: Draft law submitted to the Luxembourg Parliament - 28/08/2012 |
What does this signify in the legislative process?
Each of the European Unions’ Member States has until 22 July 2013 to transpose the European Directive 2011/61/UE of the European Parliament and of the Council of the 8 June 2011 on Alternative Investment Fund Managers (the “AIFMD”) into national law.
In Luxembourg the process of transposition is that the government, having consulted with various working groups and industry bodies, has drafted a law and filed it with the Luxembourg Parliament on Friday 24 August 2012. The Parliament must now review, discuss and if necessary modify this draft before it can be approved. It has been stated on a number of occasions that this law would be enacted by the year end.
This would strengthen Luxembourg’s position as a fund centre, as achieved under UCITS, hoping to be the place of choice for alternative fund managers. This is further bolstered by the flexibility offered through this law, to make Luxembourg’s interpretation of the law a highly favourable one for the fund industry.
Will the Level 2 measures affect this?
The Level 2 measures, providing guidance on how the AIFMD should be implemented have not yet been finalised and released by the European Commission to the European Parliament. The current expected date in circulation is late September/early October, however this remains a point of speculation.
As these measures will be in the form of a regulation, they will have a direct effect on the national law of each of the Member States and they will not require transposition. For further information on understanding the process behind the level 2 measures, please refer to our previous news alert.
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Regulatory News Alert - AIFMD: Draft law submitted to the Luxembourg Parliament
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Discover all the details of this law in the PDF attached above.