AIFMD: ESMA Q&A Update

A new question on the supervisory responsibilities of competent authorities in host Member States has been added to the ESMA Q&A on the application of the AIFM Directive . The question relates to the case where an AIFM provides its investment services through a branch established in the host Member State.

ESMA clarifies that supervisory powers are shared between the relevant competent authorities as follows:

the competent authority of the host Member State is responsible for the supervision of the branch's compliance with conduct rules referred to in Article 45(2) of the AIFM Directive ; and the competent authority of the home Member State is responsible for the supervision of the other requirements provided under the relevant applicable framework. According to ESMA, the same principle should...