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AIFMD II (EU): delegation scope, authorisation and substance, enhanced supervisory reporting, and third-party AIFM conflicts—key changes and implementation timelines

Published on: 14 October 2025

Published by a LexisNexis Ireland - Banking & Financial Services expert
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Article summary

The long-anticipated AIFMD II, amending Directive 2011/61/EU (AIFMD) and Directive 2009/65/EC on Undertakings for Collective Investment in Transferable Securities in relation to delegation arrangements, liquidity risk management, supervisory reporting, the provision of depositary and custody services, and loan origination by alternative investment funds, entered into force on 15 April 2024.

Delegation

The recitals to AIFMD II acknowledge the crucial contribution of third-party delegation to streamlined portfolio management and to securing know-how in a specific region or asset class. AIFMD already bars AIFMs from outsourcing to such an extent that they amount to a ‘letter-box entity’. Delegation remained a central theme of the AIFMD review, and the recitals also stress the need for supervisors to hold up-to-date details on the principal features of delegation set-ups, and to implement targeted adjustments to enhance AIFMD’s operation, including the standards for AIFMs that delegate to third parties. Consequently, AIFMD II does not add further substantive duties for AIFMs regarding delegation; however, as outlined below, it introduces strengthened reporting obligations for AIFMs on delegation arrangements, together with clarifications on the scope of the delegation-related rules...

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