Commission Delegated Regulation (EU) No 231/2013Show full title

1. Introductory Text

2. CHAPTER I DEFINITIONS

   1. Article 1. Definitions

   2. Article 1A. Application of Articles 2, 7 and 8 to small AIFMs

3. CHAPTER II GENERAL PROVISIONS

   1. SECTION 1 Calculation of assets under management

      1. Article 2. Calculation of the total value of assets under management

      2. Article 3. Ongoing monitoring of assets under management

      3. Article 4. Occasional breach of the threshold

      4. Article 5. Information to be provided as part of registration

   2. SECTION 2 Calculation of leverage

      1. Article 6. General provisions on the calculation of leverage

      2. Article 7. Gross method for calculating the exposure of the AIF

      3. Article 8. Commitment method for calculating the exposure of an AIF

      4. Article 9. Methods of increasing the exposure of an AIF

      5. Article 10. Conversion methodologies for derivative instruments

      6. Article 11. Duration netting rules

   3. SECTION 3 Additional own funds and professional indemnity insurance

      1. Article 12. Professional liability risks

      2. Article 13. Qualitative requirements addressing professional liability risks

      3. Article 14. Additional own funds

      4. Article 15. Professional indemnity insurance

4. CHAPTER III OPERATING CONDITIONS FOR AIFMs

   1. SECTION 1 General principles

      1. Article 16. General obligations of the FCA

      2. Article 17. Duty to act in the best interests of the AIF or the investors in the AIF and the integrity of the market

      3. Article 18. Due diligence

      4. Article 19. Due diligence when investing in assets of limited liquidity

      5. Article 20. Due diligence in the selection and appointment of counterparties and prime brokers

      6. Article 21. Acting honestly, fairly and with due skills

      7. Article 22. Resources

      8. Article 23. Fair treatment of investors in the AIF

      9. Article 24. Inducements

      10. Article 25. Effective employment of resources and procedures — handling of orders

      11. Article 26. Reporting obligations in respect of execution of subscription and redemption orders

      12. Article 27. Execution of decisions to deal on behalf of the managed AIF

      13. Article 28. Placing orders to deal on behalf of AIFs with other entities for execution

      14. Article 29. Aggregation and allocation of trading orders

   2. SECTION 2 Conflicts of interest

      1. Article 30. Types of conflicts of interest

      2. Article 31. Conflicts of interest policy

      3. Article 32. Conflicts of interest related to the redemption of investments

      4. Article 33. Procedures and measures preventing or managing conflicts of interest

      5. Article 34. Managing conflicts of interest

      6. Article 35. Monitoring conflicts of interest

      7. Article 36. Disclosure of conflicts of interest

      8. Article 37. Strategies for the exercise of voting rights

   3. SECTION 3 Risk management

      1. Article 38. Risk management systems

      2. Article 39. Permanent risk management function

      3. Article 40. Risk management policy

      4. Article 41. Assessment, monitoring and review of the risk management systems

      5. Article 42. Functional and hierarchical separation of the risk management function

      6. Article 43. Safeguards against conflicts of interest

      7. Article 44. Risk limits

      8. Article 45. Risk measurement and management

   4. SECTION 4 Liquidity management

      1. Article 46. Liquidity management system and procedures

      2. Article 47. Monitoring and managing liquidity risk

      3. Article 48. Liquidity management limits and stress tests

      4. Article 49. Alignment of investment strategy, liquidity profile and redemption policy

   5. SECTION 5 Investment in securitisation positions

      1. Article 50. Definitions

      2. Article 51. Requirements for retained interest

      3. Article 52. Qualitative requirements concerning sponsors and originators

      4. Article 53. Qualitative requirements concerning AIFMs exposed to securitisations

      5. Article 54. Corrective action

      6. Article 55. Grandfathering clause

      7. Article 56. Interpretation

   6. SECTION 6 Organisational requirements — general principles

      1. Article 57. General requirements

      2. Article 58. Electronic data processing

      3. Article 59. Accounting procedures

      4. Article 60. Control by the governing body, senior management and supervisory function

      5. Article 61. Permanent compliance function

      6. Article 62. Permanent internal audit function

      7. Article 63. Personal transactions

      8. Article 64. Recording of portfolio transactions

      9. Article 65. Recording of subscription and redemption orders

      10. Article 66. Recordkeeping requirements

   7. SECTION 7 Valuation

      1. Article 67. Policies and procedures for the valuation of the assets of the AIF

      2. Article 68. Use of models to value assets

      3. Article 69. Consistent application of valuation policies and procedures

      4. Article 70. Periodic review of valuation policies and procedures

      5. Article 71. Review of individual values of assets

      6. Article 72. Calculation of the net asset value per unit or share

      7. Article 73. Professional guarantees

      8. Article 74. Frequency of valuation of assets held by open-ended AIFs

   8. SECTION 8 Delegation of AIFM functions

      1. Article 75. General principles

      2. Article 76. Objective reasons for delegation

      3. Article 77. Features of the delegate

      4. Article 78. Delegation of portfolio or risk management

      5. Article 79. Effective supervision

      6. Article 80. Conflicts of interest

      7. Article 81. Consent and notification of sub-delegation

      8. Article 82. Letter-box entity and AIFM no longer considered to be managing an AIF

5. CHAPTER IV DEPOSITARY

   1. SECTION 1 Particulars of the written contract

      1. Article 83. Contractual particulars

   2. SECTION 2 General criteria for assessing the prudential regulation and supervision applicable to depositaries in third countries

      1. Article 84. Criteria for assessing prudential regulation and supervision applicable to a depositary in a third country

   3. SECTION 3 Depositary functions, due diligence duties and segregation obligation

      1. Article 85. Cash monitoring — general requirements

      2. Article 86. Monitoring of the AIF’s cash flows

      3. Article 87. Duties regarding subscriptions

      4. Article 88. Financial instruments to be held in custody

      5. Article 89. Safekeeping duties with regard to assets held in custody

      6. Article 90. Safekeeping duties regarding ownership verification and record keeping

      7. Article 91. Reporting obligations for prime brokers

      8. Article 92. Oversight duties — general requirements

      9. Article 93. Duties regarding subscription and redemptions

      10. Article 94. Duties regarding the valuation of shares/units

      11. Article 95. Duties regarding the carrying out of the AIFM’s instructions

      12. Article 96. Duties regarding the timely settlement of transactions

      13. Article 97. Duties related to the AIF’s income distribution

      14. Article 98. Due diligence

      15. Article 99. Segregation obligation

   4. SECTION 4 Loss of financial instruments, liability discharge and objective reasons

      1. Article 100. Loss of a financial instrument held in custody

      2. Article 101. Liability discharge ...

      3. Article 102. Objective reasons for the depositary to contract a discharge of liability

6. CHAPTER V TRANSPARENCY REQUIREMENTS, LEVERAGE, RULES RELATING TO THIRD COUNTRIES AND EXCHANGE OF INFORMATION ON THE POTENTIAL CONSEQUENCES OF AIFM ACTIVITY

   1. SECTION 1 Annual report, disclosure to investors and reporting to competent authorities

      1. Article 103. General principles for the annual report

      2. Article 104. Content and format of the balance sheet or statement of assets and liabilities and of the income and expenditure account

      3. Article 105. Report on the activities of the financial year

      4. Article 106. Material changes

      5. Article 107. Remuneration disclosure

      6. Article 108. Periodic disclosure to investors

      7. Article 109. Regular disclosure to investors

      8. Article 110. Reporting to the FCA

      9. Article 111. Use of leverage on a ‘substantial basis’

   2. SECTION 2 AIFMs managing leveraged AIFs

      1. Article 112. Restrictions on the management of AIFs

   3. SECTION 3 Specific rules relating to third countries

      1. Article 113. General requirements

      2. Article 114. Mechanisms, instruments and procedures

      3. Article 115. Data protection

   4. SECTION 4 Exchange of information on the potential systemic consequences of AIFM activity

      1. Article 116. Exchange of information on the potential systemic consequences of AIFM activity

7. CHAPTER VI FINAL PROVISIONS

   1. Article 117. Entry into force

8. Signature

9. 1. ANNEX I

      Methods of increasing the exposure of an AIF

      1. 1. Unsecured cash borrowings: When cash borrowings are invested they have...

      2. 2. Secured cash borrowings: Secured cash borrowings are similar to unsecured...

      3. 3. Convertible borrowings: Convertible borrowings are purchased debt which has the...

      4. 4. Interest rate swaps: An interest rate swap is an agreement...

      5. 5. Contracts for differences: A contract for differences (CFD) is an...

      6. 6. Futures contracts: A futures contract is an agreement to buy...

      7. 7. Total return swaps: A total return swap is an agreement...

      8. 8. Forward agreements: A forward agreement is a customised, bilateral agreement...

      9. 9. Options: An option is an agreement that gives the buyer,...

      10. 10. Repurchase agreements: The repurchase agreement normally occurs where an AIF...

      11. 11. Reverse repurchase agreements: This transaction occurs where an AIF ‘purchases’...

      12. 12. Securities lending arrangements: An AIF engaging in a securities lending...

      13. 13. Securities borrowing arrangements: An AIF engaging in the borrowing of...

      14. 14. Credit default swaps: A credit default swap (CDS) is a...

   2. ANNEX II

      Conversion methodologies for derivative instruments

      1. 1. The following conversion methods shall be applied to the non-exhaustive...

      2. 2. The following conversion methods shall be applied to the non-exhaustive...

      3. 3. List of examples of non-standard derivatives with the related commitment...

      4. 4. Barrier (knock-in knock-out) options

   3. ANNEX III

      Duration netting rules

      1. 1. An interest rate derivative shall be converted into its equivalent...

      2. 2. The equivalent underlying asset positions calculated in accordance with to...

      3. 3. The AIF shall calculate its exposures as the sum of...

   4. ANNEX IV

      1. Reporting Templates: AIFM (Articles 3(3)(d) and 24 of Directive 2011/61/EU)

      2. Reporting Templates: AIF (Articles 3(3)(d) and 24 of Directive 2011/61/EU)

      3. Results of stress tests