Changes from plenary report to adopted text

Removed‘(c) the third country where the depositary is established is not identified as a high-risk third country pursuant to Article 9(2) of Directive (EU) 2015/849 at the time of the AIFM’s application for authorisation in accordance with Article 7(1);’;

Removed(d) the Member States in which the units or shares of the non-EU AIF are intended to be marketed, and, in so far as different, the home Member State of the AIFM, have signed an agreement with the third country where the depositary is established which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters including any multilateral tax agreements and the third country is not mentioned in Annex I to the relevant last updated version of the Council conclusions ▌on the revised EU list on non-cooperative jurisdictions for tax purposes;’ If a third country where the non-EU AIF is established is added to that annex after the time of the AIFM’s application for authorisation in accordance with Article 7(1), closed-ended funds shall continue to be considered to meet the criteria of this paragraph for a period of two years.

RemovedFor the purposes of this paragraph, a third country that has been continuously mentioned in Annex II to the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes for a period of over three years shall be considered to be mentioned in Annex I to those conclusions.’;

Removed(b) paragraph 11 is amended as follows:

Removed(i) in the second subparagraph, point (c) is replaced by the following:

Removed‘(c) the depositary has exercised all due skill, care and diligence in the selection and the appointment of any third party to whom it wants to delegate parts of its tasks, except where that third party is a central securities depository acting in the capacity of an issuer CSD as defined in the delegated act adopted on the basis of Articles 29(3) and 48(10) of Regulation (EU) No. 909/2014, and keeps exercising all due skill, care and diligence in the periodic review and ongoing monitoring of any third party to whom it has delegated parts of its tasks and of the arrangements of the third party in respect of the matters delegated to it;

Removed▌

Removed(ii) the fifth subparagraph is replaced by the following:

Removed‘For the purposes of this paragraph, the provision of services by a central securities depository acting in the capacity of an issuer CSD as defined in the delegated act adopted on the basis of Articles 29(3) and 48(10) of Regulation (EU) No 909/2014 shall not be considered a delegation of the depositary’s custody functions. The provision of services by a central securities depository acting in the capacity of an investor CSD as defined in that delegated act shall be considered a delegation of the depositary’s custody functions.’;

Removed(c) paragraph 16 is replaced by the following:

Removed‘16. The depositary shall make available to its competent authorities, to the competent authorities of the AIF that has appointed it as a depositary and to the competent authorities of the AIFM that manages that AIF, ▌all information that it has obtained while performing its duties and that may be necessary for the competent authorities of the AIF or the AIFM. If the competent authorities of the AIF or the AIFM are different from those of the depositary, the competent authorities of the depositary shall share the information received without delay with the competent authorities of the AIF and the AIFM, and the competent authorities of the AIF or the AIFM shall share without delay with the competent authorities of the depositary any information relevant for the exercise of those authorities’ supervisory powers.’;

Removed(9) Article 23 is amended as follows:

Removed(a) paragraph 1 is amended as follows:

Removed(i) point (h) is replaced by the following:

Removed‘(h) a description of the AIF’s liquidity risk management, including the redemption rights both in normal and in exceptional circumstances, disclosing the possibility and conditions for using liquidity management tools selected in accordance with Article 16(2b), and the existing redemption arrangements with investors.’;

Removed(ii) point (ia) is inserted:

Removed‘(ia) a list of fees and charges that will be applied in connection with the operation of the AIF and that will be borne by the AIFM▌.’;

Removed(b) in paragraph 4, the following points (d), (e) and (f) are added:

Removed‘(d) portfolio composition of originated loans;

Removed(e) on an annual basis, all direct and indirect fees and charges that were directly or indirectly charged ▌to the AIF▌;

Removed(f) on an annual basis, any parent company, subsidiary or special purpose entity established in relation to the AIF’s investments by the AIFM▌.’;

Removed(10) Article 24 is amended as follows:

Removed(a) paragraph 1 is replaced by the following:

Removed‘1. An AIFM shall regularly report to the competent authorities of its home Member State on the markets and instruments in which it trades on behalf of the AIFs it manages, and on other relevant economic and accounting information set out in paragraph 2.

RemovedIt shall provide information on the instruments in which it is trading, on markets of which it is a member or where it actively trades, and on the exposures of each of the AIFs it manages.’; (b) in paragraph 2:

Removed(i) point (d) is deleted;

Removed(ii) the following points are added:

Removed‘(ea) the total amount of leverage of the net asset value employed by the AIF;

Removed(eb) with respect to each AIF managed or marketed in the Union by an authorised AIFM, information regarding delegation arrangements concerning portfolio management or risk management functions and in particular:

Removed(i) information on the entities to which such functions have been delegated, namely the name and relevant legal identifier of each delegate, its jurisdiction of establishment and, where relevant, its supervisory authority;

Removed(ia) for each of the following, a description of the human and technical resources:

Removed- employed by or committed to the AIFM for performing day-to-day portfolio or risk management tasks within the AIFM;

Removed- employed by or committed to the delegate for performing those services on a delegated basis; and

Removed- employed by or committed to the AIFM for monitoring and controlling the delegate;

Removed(ii) information on the function delegated, the type of delegation (full or partial), and the date of the delegation agreement or contract;

Removed(iii) where sub-delegation arrangements are in place, the same information in respect of the sub-delegates and the functions sub-delegated;

Removed(iv) the date of conclusion and expiration of the delegation and sub-delegation arrangements;

Removed(v) confirmation that the AIFM has implemented periodic due diligence measures to oversee, monitor and control the delegate, and kept records of issues identified and, where relevant, the measures adopted to address those issues.’

Removed(c) in paragraph 5, second subparagraph is replaced by the following:‘In exceptional circumstances and where required in order to ensure the stability and integrity of the financial system, or to promote long-term sustainable growth, ESMA after consulting the ESRB may request the competent authorities of the home Member State to impose additional reporting requirements.’;

Removed(d) paragraph 6 is replaced by the following:

Removed‘6. ESMA shall develop draft regulatory technical standards specifying the details to be reported according to paragraphs 1 and points (a) to (ea) of paragraph 2. Those draft regulatory technical standards shall also set out the appropriate level of standardisation of the information to be reported according to paragraph 2, point (eb). In order to reduce duplication and inconsistencies between reporting frameworks in the asset management sector and other sectors of the financial industry, ESMA shall take into account:

Removed(i) other reporting requirements to which the AIFMs are subject;

Removed(ii) international developments and standards agreed at Union or global level; and

Removed(iii) the report issued in accordance with paragraph 2 of Article 69b.

RemovedESMA shall submit those draft regulatory technical standards to the Commission by [Please insert date = 36 months after the entry into force of this Directive].

RemovedPower is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.’;

Removed(d) the following paragraph 7 is added:

Removed‘7. ESMA shall develop draft implementing technical standards specifying:

Removed(a) the format and data standards for the reports referred to in paragraphs 1 and 2, which shall include in particular relevant legal identifiers and international securities identification numbers (ISINs);

Removed(b) the reporting frequency and timing;

Removed(ba) methods and arrangements for submitting the reports referred to in paragraphs 1 and 2, including methods and arrangements to improve data standardisation and efficient sharing and use of data already reported in any Union reporting framework by any relevant competent authority, at Union or national level, taking into account the findings of the report issued in accordance with paragraph 2 of Article 69b;

Removed(bb) the reporting template that includes a minimum set of indicators that would be relevant for AIFs to provide in exceptional circumstances referred to in paragraph 5.

RemovedWhen developing those draft implementing technical standards, ESMA shall take into account international developments and standards agreed at Union or global level and the findings of the report issued in accordance with Article 69b(2).

RemovedESMA shall submit those draft implementing technical standards to the Commission by [Please insert date = 36 months after the entry into force of this Directive].

RemovedPower is delegated to the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010.’;

Removed(10a) in Article 25, the following paragraph is inserted:

Removed‘3a Limits to the level of leverage referred to in paragraph 3 shall be based on the leverage measures specified in accordance with Article 4(3) of this Directive.’;

Removed(10b) in Article 31, the following paragraph is added:

Removed‘6a. The provisions of this article shall not apply to AIFs constituted exclusively for the purpose of purchasing company shares and proposed to employees of these companies within the framework of employee savings schemes.’

Removed(11) in Article 35(2), points (b) and (c) are replaced by the following: