News Flash: ESMA updates its Q&A on the application of the AIFMD
On 21 July 2015, ESMA released an update of its Q&A in relation to the application of the AIFMD (ESMA/2015/1137), whereby the most salient features may be summarised as follows:
1. Reporting to national competent authorities under Articles 3, 24 and 42 of the AIFMD
ESMA explains how AIFMs should convert the total value of assets under management into Euro. The AIFM should first use the rounded values of the AIFs in their base currency which should then be divided by the corresponding value of one Euro into the base currency of the AIFs.
These rounded values in the base currency, and in Euro, as well as the value of the exchange rate used for the conversion should be reported in the consolidated reporting template for AIFM-and AIF-specific information.
ESMA further provides that AIFMs should include AIFs created during the reporting period in the total value of assets under management of the AIFM for that specific reporting period. Hence, the total value of assets under management at the level of the AIFM at the reporting date will not correspond to the sum of the values of assets under management of the AIFs reported for that reporting period.
2. Calculation of the total value of assets under management
ESMA also provides for clarification in relation to the inclusion of short non-derivative positions in the calculation of the total value assets under management. Article 2(1)(b) of the implementing Regulation states that AIFMs should include assets acquired through leverage.
So, where assets are being received in the framework of such a short non-derivative position, those assets should be included in that calculation.