Risk management for Alternative Investment Funds under AIFMD - Managing a wide range of risks | Deloitte solution
The Law on 12 July 2013 implementing the Alternative Investment Fund Managers Directive (“AIFMD”) in Luxembourg and the EU Commission Delegated Regulation 231/2013 have set the rules of the game for alternative investment fund risk management. In Luxembourg, “Man Cos” managing Part II funds and SIFs are likely to be impacted.
The AIFMD framework introduces stringent and new risk management requirements for alternative investment fund managers (“AIFMs”) but does not provide full detailed implementation measures with regards to risk measurement techniques or monitoring procedures. Implementing organisational and documentation requirements is already challenging in most cases, but identifying and implementing appropriate risk management procedures for alternative asset classes – private equity, real estate, infrastructure, is likely to be an additional significant amount of work for risk managers.
We offer our clients regulatory and quantitative risk solutions so as to facilitate the gradual movement towards new AIFMD requirements. Our services can be articulated over organisational and/or operational dimensions and cover all asset classes:
|Scope assessment and gap analysis||
- AIFMD gap analysis, recommendations and implementation roadmap
|Organisation of risk management activities||
- Formalisation of roles and responsibilities, and of the oversight model at BoD level
|Development of risk measurement techniques||
- Development of ex-ante quantitative risk techniques for private equity or real estate funds
|On-going risk reporting support||
- Periodic risk reporting to all stakeholders, including regulatory risk reporting
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