Aside from the main areas of change, the Alternative Investment Fund Managers Directive has brought in a number of additional requirements necessitating action in relation to its implementation thus needing specific attention.
In Luxembourg, the CSSF will be responsible for the supervision of the alternative investment fund industry. The preliminary step for an AIFM is to ensure the correct licence has been obtained from the CSSF, thus proving its authorisation to act on the Luxembourg market.
The CSSF will be looking at whether there is an adequate separation of powers under the corporate governance structure, the various delegation arrangements as well as ensuring that the AIFM meets the appropriate capital requirements.
How can Deloitte help?
Through our knowledge of the AIFMD combined with our extensive experience of local regulation we can advise our clients on market best practice in Luxembourg in addition to their compliance obligations.
Our services cover the following points:
- Identification of conflicts of interests in particular between the AIFM and the AIF and their clients and the organisational and administrative arrangement related to their handling
- Delegation of AIFM functions to third parties is allowed but only under certain conditions. The AIFM must objectively justify their entire delegation structure as well as demonstrate that the delegate is qualified and capable of carrying out the delegated functions. With rules being similar to those laid down for the UCITS Directive, we will leverage on our experience in this field to advise clients on best action in relation to their delegation needs
- Assistance in the compliance controls relating to the international distribution of investment funds
- We have extensive experience in obtaining regulatory licences for Financial Sector Professionals and management companies and regulated investment vehicles
- Through our knowledge of the regulatory landscape we will help clients to ensure that they meet all capital requirements