The Directive provides a detailed valuation framework, including requirements for a detailed valuation policy and procedures to be applied consistently across all alternative investment funds and subject to periodic review. KPMG is finding the valuation policies of many AIFMs have insufficient detail to be considered AIFMD compliant. The regulation requires competence and independence for personnel performing valuation functions. As such, this is an area that will require close attention by AIFMs.
- Article 19 of AIFMD requires that assets of each fund an AIFM manages are valued appropriately, consistently, independently and with skill, care and diligence.
- Issues we’re finding with other clients: Many valuation policies have insufficient detail to be AIFMD compliant. There’s often a disconnect between the documented and the implemented valuation policy. Many funds don’t have the depth of resources to successfully undertake truly independent valuations.
- How KPMG can help: KPMG’s Financial Services practice can develop a tailored process to suit your needs as a fully or partially outsourced valuation function or as support to review or benchmark your own valuation policies. The KPMG approach is tried and tested and fits alongside your existing processes and allows the AIFM to retain overall control.