Monday, January 14, 2013

Update on the implementation of the Alternative Investment Fund Managers Directive (AIFMD) in Luxembourg:

On December 19, 2012, the European Commission published the AIFMD Level 2 Regulation ("the Regulation"). The Regulation is intended to supplement the AIFMD (termed a Level 1 measure), and by extension, the legislation that will eventually be implemented by EU Member States in order to give effect to the AIFMD.

The AIFMD, as an EU Directive, will not take effect of its own accord. Instead, EU Member States must pass implementing legislation to effect it at the national level. 

In contrast to the AIFMD, the Regulation does not require implementation at the national level. Instead, when the Regulation enters into force, it will be directly applicable to all EU Member States, without the need for transposition into the national law. The Regulation is subject to a three month scrutiny period by the European Parliament and the EU Council and will enter into force at the end of this three month period if neither co-legislator objects. 

On August 24, 2012, bill of law no. 6471 (Bill 6471) was submitted to the Luxembourg Parliament. Bill 6471 is intended to implement the AIFMD at the national level in Luxembourg. It was expected that Bill 6471 would be adopted by year end of 2012, but to date has not yet been voted on by the Luxembourg legislature. As a result, the full scope of the implementing law will not be known until the bill is voted on and published by the Luxembourg legislature. 

Very few EU Member States have passed AIFMD implementing legislation, and Luxembourg will in all likelihood be among the first to do so. Currently, it appears that the Netherlands are the only member state to have passed implementing legislation (the Dutch legislature having passed the law in October 2012).