Law firms and corporations with a stake in the European financial sector should be aware of a new development announced on 20 July 2023. The Council of the European Union has reached a political agreement with the European Parliament on the proposed Directive amending two significant directives – the Alternative Investment Fund Managers Directive (2011/61/EU), and the UCITS Directive (2009/65/EC).
This development is noteworthy as it consists of amendments that cover areas including delegation arrangements, liquidity risk management, supervisory reporting, the provision of depositary and custody services, as well as loan origination by alternative investment funds. The coded reference for these amendments is 2021/0376 (COD).
This political agreement indicates a unified stand in amending the existing directives and suggests that these changes will likely have a considerable impact on the operations of investment fund managers and UCITS registered in the EU.
The detailed provisions of these amendments are yet to be circulated. However, given the potential for significant changes within the European financial sector, legal professionals would do well to stay informed about further developments.
For the original article about these legislative updates, please visit this link.