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AIFMD Level 2 Regulation In force since 22 July 2013

Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision
32013R0231 · official text on EUR-Lex

This English text is a careful, terminology-researched translation prepared by eucite.com — not an official government translation. The German original linked above is the legally authoritative text.

Articles

Chapter I DEFINITIONS

• Article 1 — Definitions

Chapter II GENERAL PROVISIONS

Section 1 Calculation of assets under management

• Article 2 — Calculation of the total value of assets under management
• Article 3 — Ongoing monitoring of assets under management
• Article 4 — Occasional breach of the threshold
• Article 5 — Information to be provided as part of registration

Section 2 Calculation of leverage

• Article 6 — General provisions on the calculation of leverage
• Article 7 — Gross method for calculating the exposure of the AIF
• Article 8 — Commitment method for calculating the exposure of an AIF
• Article 9 — Methods of increasing the exposure of an AIF
• Article 10 — Conversion methodologies for derivative instruments
• Article 11 — Duration netting rules

Section 3 Additional own funds and professional indemnity insurance

• Article 12 — Professional liability risks
• Article 13 — Qualitative requirements addressing professional liability risks
• Article 14 — Additional own funds
• Article 15 — Professional indemnity insurance

Chapter III OPERATING CONDITIONS FOR AIFMs

Section 1 General principles

• Article 16 — General obligations for competent authorities
• Article 17 — Duty to act in the best interests of the AIF or the investors in the AIF and the integrity of the market
• Article 18 — Due diligence
• Article 19 — Due diligence when investing in assets of limited liquidity
• Article 20 — Due diligence in the selection and appointment of counterparties and prime brokers
• Article 21 — Acting honestly, fairly and with due skills
• Article 22 — Resources
• Article 23 — Fair treatment of investors in the AIF
• Article 24 — Inducements
• Article 25 — Effective employment of resources and procedures — handling of orders
• Article 26 — Reporting obligations in respect of execution of subscription and redemption orders
• Article 27 — Execution of decisions to deal on behalf of the managed AIF
• Article 28 — Placing orders to deal on behalf of AIFs with other entities for execution
• Article 29 — Aggregation and allocation of trading orders

Section 2 Conflicts of interest

• Article 30 — Types of conflicts of interest
• Article 31 — Conflicts of interest policy
• Article 32 — Conflicts of interest related to the redemption of investments
• Article 33 — Procedures and measures preventing or managing conflicts of interest
• Article 34 — Managing conflicts of interest
• Article 35 — Monitoring conflicts of interest
• Article 36 — Disclosure of conflicts of interest
• Article 37 — Strategies for the exercise of voting rights

Section 3 Risk management

• Article 38 — Risk management systems
• Article 39 — Permanent risk management function
• Article 40 — Risk management policy
• Article 41 — Assessment, monitoring and review of the risk management systems
• Article 42 — Functional and hierarchical separation of the risk management function
• Article 43 — Safeguards against conflicts of interest
• Article 44 — Risk limits
• Article 45 — Risk measurement and management

Section 4 Liquidity management

• Article 46 — Liquidity management system and procedures
• Article 47 — Monitoring and managing liquidity risk
• Article 48 — Liquidity management limits and stress tests
• Article 49 — Alignment of investment strategy, liquidity profile and redemption policy

Section 5 Investment in securitisation positions

• Article 50 — Definitions
• Article 51 — Requirements for retained interest
• Article 52 — Qualitative requirements concerning sponsors and originators
• Article 53 — Qualitative requirements concerning AIFMs exposed to securitisations
• Article 54 — Corrective action
• Article 55 — Grandfathering clause
• Article 56 — Interpretation

Section 6 Organisational requirements — general principles

• Article 57 — General requirements
• Article 58 — Electronic data processing
• Article 59 — Accounting procedures
• Article 60 — Control by the governing body, senior management and supervisory function
• Article 61 — Permanent compliance function
• Article 62 — Permanent internal audit function
• Article 63 — Personal transactions
• Article 64 — Recording of portfolio transactions
• Article 65 — Recording of subscription and redemption orders
• Article 66 — Recordkeeping requirements

Section 7 Valuation

• Article 67 — Policies and procedures for the valuation of the assets of the AIF
• Article 68 — Use of models to value assets
• Article 69 — Consistent application of valuation policies and procedures
• Article 70 — Periodic review of valuation policies and procedures
• Article 71 — Review of individual values of assets
• Article 72 — Calculation of the net asset value per unit or share
• Article 73 — Professional guarantees
• Article 74 — Frequency of valuation of assets held by open-ended AIFs

Section 8 Delegation of AIFM functions

• Article 75 — General principles
• Article 76 — Objective reasons for delegation
• Article 77 — Features of the delegate
• Article 78 — Delegation of portfolio or risk management
• Article 79 — Effective supervision
• Article 80 — Conflicts of interest
• Article 81 — Consent and notification of sub-delegation
• Article 82 — Letter-box entity and AIFM no longer considered to be managing an AIF

Chapter IV DEPOSITARY

Section 1 Particulars of the written contract

• Article 83 — Contractual particulars

Section 2 General criteria for assessing the prudential regulation and supervision applicable to depositaries in third countries

• Article 84 — Criteria for assessing prudential regulation and supervision applicable to a depositary in a third country

Section 3 Depositary functions, due diligence duties and segregation obligation

• Article 85 — Cash monitoring — general requirements
• Article 86 — Monitoring of the AIF’s cash flows
• Article 87 — Duties regarding subscriptions
• Article 88 — Financial instruments to be held in custody
• Article 89 — Safekeeping duties with regard to assets held in custody
• Article 90 — Safekeeping duties regarding ownership verification and record keeping
• Article 91 — Reporting obligations for prime brokers
• Article 92 — Oversight duties — general requirements
• Article 93 — Duties regarding subscription and redemptions
• Article 94 — Duties regarding the valuation of shares/units
• Article 95 — Duties regarding the carrying out of the AIFM’s instructions
• Article 96 — Duties regarding the timely settlement of transactions
• Article 97 — Duties related to the AIF’s income distribution
• Article 98 — Due diligence
• Article 99 — Segregation obligation

Section 4 Loss of financial instruments, liability discharge and objective reasons

• Article 100 — Loss of a financial instrument held in custody
• Article 101 — Liability discharge under Article 21(12) of Directive 2011/61/EU
• Article 102 — Objective reasons for the depositary to contract a discharge of liability

Chapter V TRANSPARENCY REQUIREMENTS, LEVERAGE, RULES RELATING TO THIRD COUNTRIES AND EXCHANGE OF INFORMATION ON THE POTENTIAL CONSEQUENCES OF AIFM ACTIVITY

Section 1 Annual report, disclosure to investors and reporting to competent authorities

• Article 103 — General principles for the annual report
• Article 104 — Content and format of the balance sheet or statement of assets and liabilities and of the income and expenditure account
• Article 105 — Report on the activities of the financial year
• Article 106 — Material changes
• Article 107 — Remuneration disclosure
• Article 108 — Periodic disclosure to investors
• Article 109 — Regular disclosure to investors
• Article 110 — Reporting to competent authorities
• Article 111 — Use of leverage on a ‘substantial basis’

Section 2 AIFMs managing leveraged AIFs

• Article 112 — Restrictions on the management of AIFs

Section 3 Specific rules relating to third countries

• Article 113 — General requirements
• Article 114 — Mechanisms, instruments and procedures
• Article 115 — Data protection

Section 4 Exchange of information on the potential systemic consequences of AIFM activity

• Article 116 — Exchange of information on the potential systemic consequences of AIFM activity

Chapter VI FINAL PROVISIONS

• Article 117 — Entry into force