Dutch legislative proposal AIFM Directive submitted to Dutch Lower House (19-04-2012)
On 19 April, 2012, the Dutch Minister of Finance has submitted to the Dutch Lower House the Dutch legislative proposal implementing the Alternative Investment Fund Managers Directive in Dutch law. As a result of that proposal, a very large number of currently exempted fund managers will become subject to supervision.
The Dutch legislative proposal (the “Proposal”) implementing the Alternative Investment Fund Managers Directive in the Netherlands was put before the Dutch Parliament on 19 April 2012. The Proposal introduces a licensing requirement for Netherlands-based managers of one or more “alternative investment funds” (“AIFs”), being any collective investment scheme that is not subject to authorisation under the European Directive regulating Undertakings for Collective Investment in Transferable Securities (“UCITS”).
As a result of the Proposal, nearly all existing Dutch exemptions (€100,000 exemption, “qualified investors only” exemption, less than 150 offerees exemption) will be repealed. AIF managers (or self-managed AIFs) currently relying on these exemptions will require a license. Currently licensed AIF managers and self-managed AIFs will need to obtain a new license from the Dutch Authority for the Financial Markets (“AFM”). The Proposal also introduces a large number of amendments to the current Dutch framework for (managers of) non-UCITS collective investment schemes, including:
(a) new rules on “depositaries”;
(b) changes in outsourcing rules;
(c) new (ongoing and incidental) reporting requirements; (iv) new investor disclosure requirements; (d) new governance and organisational requirements (risk management, liquidity, valuation, etc.); and (e) new remuneration rules.
Newly registered managers will need to obtain a license by 22 July 2013. Currently licensed managers will need to comply with the new rules pursuant to the Proposal by the same date and to obtain a license from the AFM by 22 July 2014.
Our FMLA Client Memo concerning the Proposal can be downloaded below.