AIFMD Regulation 

KPMG and the AIFM and UCITS Directives

KPMG has been an active member of various industry working groups throughout the long negotiation period of the Alternative Investment Fund Manager's (AIFM) Directive and the current Level II discussions. The AIFM Directive needs to be implemented in local legislation by Member States within the transitional period up until the first of July of 2013. The revision of Undertakings for Collective Investments in Transferable Securities (UCITS), that concerns funds which are targeted at retail investors, has come into force as per the first of July 2011.

The above means that Fund Managers e need to address whether they are in scope of one or both of these directives. The passport for these Fund Managers under both Directives means that organizations need to comply with an extensive set of compliance of the organization to the regulatory requirements as stated in the directives and the underlying regulations.

Complying with AIFMD/UCITS

Complying with AIFMD/UCITS is much more than a purely technical regulatory exercise. Large compliance projects will have wide-ranging impacts on a company's systems and processes, people and business beyond the risk management, compliance and finance functions. In addition to the technical issues faced by a company in complying with AIFMD/ UCITS, the complexity will also be determined by factors such as the number of countries in which a company operates, the flexibility of source systems, the level of communication between departments and the number of other strategic initiatives competing for budget and resources.

KFirst Complexity Meter

KPMG has designed a tool to help our fund management clients indentify the impact these directives could have on their unique business and operation. KFirst Complexity Meter is designed as a questionnaire to help management determine the level of complexity and effort that would be needed to comply with AIFMD/UCITS considering the unique model they conduct business and operations with. By helping management determine their internal capability or capacity for complying KFirst Complexity Meter becomes the first step in determining the appropriate structure of the project – its scope and timing and the resources required. It will give you guidance on the complexity of the chosen passport and the impact of this passport on your organization.

Deliverables

The KFirst Complexity Meter consists of:

• Strategic impact assessment
• Passport authorization complexity
• Organizational structure complexity
• Gap Analysis

The deliverables of the KFirst Tool will be:

• Strategic position paper
• Impact assessment
• Gap analysis
• Input for the project plan