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port specific information for any managed EU AIFs and each AIF marketed in the Union. In that case, “Union” should be understood as covering the EU Member States + Iceland, Norway and Liech- tenstein as soon as the AIFMD is implemented in these countries. Regarding the classification of information con- tained in the AIFMD technical guidance (ESMA document 2013-1358), ESMA further confirms that: « “Mandatory” information should always be re- ported; « “Optional” information should be reported if the AIFM has information to report (e.g. such infor- mation would not be left to the discretion of the AIFM); « “Conditional” information is linked to other infor- mation (flags) in the reporting template. ESMA further clarifies certain calculation items within the AIFMD reporting. Among the main el- ements are the handling of cash positions for investment strategy allocations, the confirmation that account overdrafts are to be seen as funding sources and the clarification that “excessive lev- erage” should be determined by using a monthly average compared to a monthly calculated NAV. If the NAV is not calculated monthly a single cross- ing of the thresholds within the period is sufficient to be seen as “excessively leveraged”. Other ele- ments have been further clarified by ESMA, in an attempt to provide uniformity ahead of the first reports, which are to be sent to the CSSF by the end of October.

AIFMD - ESMA Q&A Update Background The purpose of the ESMA Q&A is to promote com- mon supervisory approach and practices in order to ensure that the AIFMD is applied in a uniform man- ner across the EU. The previous version of the ESMA Q&A was issued on 25 March 2014. What’s in there? On 27 June and 18 July 2014, ESMA updated its AIF- MD Q&A (ESMA 2014/714) as follows: SECTION 1 - REMUNERATION (NEW QUESTION 5) AIFM should not be able to exclude portfolio man- agers from the scope of “identified staff” only because they are bound by investment limits set out by law or internal guidelines. ESMA further provides some guidance on how to determine whether a portfolio manager could exert material influence on the AIFM’s risk profile and thus qualify as “identified staff”. In that respect the following criteria should be taken into consideration: « Percentage size of the AIF portfolio being man- aged; « Existence of a performance benchmark to be met by the portfolio manager; « Tolerated percentage deviation from the bench- mark; « Daily monitoring of the portfolio manager by the AIFM. SECTION 3 - REPORTING TO COMPETENT AU- THORITIES (NEW QUESTION 19 TO 25) Clarification is provided with respect to the coun- tries covered by the terms “EEA AIFs” and “EEA AIFMs” (i.e. EU Member States + Iceland, Norway, Liechtenstein). According to Article 24-2 AIFMD, AIFMs shall re-

AIFMD - Publication of the Commission Delegated Regulation Background AIFMD entered into force on 22 July 2013.The lev- el 1 Directive ( AVAILABLE HERE ) is supplemented by a level 2 Regulation ( AVAILABLE HERE ). In accordance with Article 4.4 of the AIFMD, the Commission shall adopt regulatory technical standards so as to ensure that uniform rules ap- ply in respect of the types of AIFM covered by the directive. What’s in there? On 24 June 2014, the Commission Delegated Regulation (EU) No 694/2014 of 17 December 2013 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to regulatory technical standards (RTS) determining types of AIFM (the “Commission Del- egated Regulation”) was published in the Official Journal of the European Union. As a reminder, this Commission Delegated Regu- lation sets forth the rules to be applied in order to determine whether an AIFM is managing AIFs of the open-ended or closed-ended form. Such assessment should enable AIFMs to identify the rules applying to their activities in the area of liquidity management and valuation of the AIF assets. What’s next? The Commission Delegated Regulation as pub- lished in the Official Journal of the European Un- ion is AVAILABLE HERE .

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