On 1 October, ESMA published the final guidelines on AIFMD reporting obligations and the Private Equity industry in Luxembourg breathed a collective sigh of relief.
On 1 October, ESMA published the
I was among those who read the very first version back in May 2013 and grimaced. The consultation paper looked like additional burden with no benefit for the industry. In the end, ESMA decided to omit some of the more cumbersome requirements, such as information on the Value at Risk, from the final version: so what happened in between?
A collective voice
After transposing AIFMD into national law and modernizing the Limited Partnership regime, expectations are high for Luxembourg as a potential location of choice for future fundraising vehicles. Given the big stakes, LPEA Members, came together around one table to issue a joint response. Our part focused on addressing the additional measures of risk such as Value at Risk in the context of PE: with the increased influence that came from a collective voice, it seems we were successful in getting our message across.
Nevertheless, Private Equity professionals still have their work cut out. Reporting will be high on the agenda and they will have to handle other big issues including how to formalize multiple procedures effectively. AIFMD, however, is just one small, and potentially costly, piece of a larger jigsaw where only those who perform and attract future fundraising will remain in the game in the long term.
Further reading:
- AIFMD: back to basics in the Private Equity Mook
- AIFM Directive updates on the KPMG Luxembourg Website
- The final guidelines on AIFMD reporting obligations and related documents are available on kpmgregulapedia.lu
