European Commission 19 December 2012, Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision Text with EEA relevance

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Commission Delegated Regulation (EU) No 231/2013 supplements Directive 2011/61/EU by establishing uniform rules for Alternative Investment Fund Managers (AIFMs) regarding exemptions, operating conditions, and the calculation of leverage and assets under management. Key provisions define the functions and duties of depositaries, risk and liquidity management systems, and specific transparency requirements for annual reporting and investor disclosures. The regulation ensures direct applicability of standards for the supervision and authorization of AIFMs to enhance market integrity and investor protection across the Union.AI

European Union · · · Cited by 386 · 19-12-2012

CHAPTER I. DEFINITIONS
Article 1. Definitions
CHAPTER II. GENERAL PROVISIONS
SECTION 1. Calculation of assets under management
Article 2. Calculation of the total value of assets under management
Article 3. Ongoing monitoring of assets under management
Article 4. Occasional breach of the threshold
Article 5. Information to be provided as part of registration
SECTION 2. Calculation of leverage
Article 6. General provisions on the calculation of leverage
Article 7. Gross method for calculating the exposure of the AIF
Article 8. Commitment method for calculating the exposure of an AIF
Article 9. Methods of increasing the exposure of an AIF
Article 10. Conversion methodologies for derivative instruments
Article 11. Duration netting rules
SECTION 3. Additional own funds and professional indemnity insurance
Article 12. Professional liability risks
Article 13. Qualitative requirements addressing professional liability risks
Article 14. Additional own funds
Article 15. Professional indemnity insurance
CHAPTER III. OPERATING CONDITIONS FOR AIFMs
SECTION 1. General principles
Article 16. General obligations for competent authorities
Article 17. Duty to act in the best interests of the AIF or the investors in the AIF and the integrity of the market
Article 18. Due diligence
Article 19. Due diligence when investing in assets of limited liquidity
Article 20. Due diligence in the selection and appointment of counterparties and prime brokers
Article 21. Acting honestly, fairly and with due skills
Article 22. Resources
Article 23. Fair treatment of investors in the AIF
Article 24. Inducements
Article 25. Effective employment of resources and procedures — handling of orders
Article 26. Reporting obligations in respect of execution of subscription and redemption orders
Article 27. Execution of decisions to deal on behalf of the managed AIF
Article 28. Placing orders to deal on behalf of AIFs with other entities for execution
Article 29. Aggregation and allocation of trading orders
SECTION 2. Conflicts of interest
Article 30. Types of conflicts of interest
Article 31. Conflicts of interest policy
Article 32. Conflicts of interest related to the redemption of investments
Article 33. Procedures and measures preventing or managing conflicts of interest
Article 34. Managing conflicts of interest
Article 35. Monitoring conflicts of interest
Article 36. Disclosure of conflicts of interest
Article 37. Strategies for the exercise of voting rights
SECTION 3. Risk management
Article 38. Risk management systems
Article 39. Permanent risk management function
Article 40. Risk management policy
Article 41. Assessment, monitoring and review of the risk management systems
Article 42. Functional and hierarchical separation of the risk management function
Article 43. Safeguards against conflicts of interest
Article 44. Risk limits
Article 45. Risk measurement and management
SECTION 4. Liquidity management
Article 46. Liquidity management system and procedures
Article 47. Monitoring and managing liquidity risk
Article 48. Liquidity management limits and stress tests
Article 49. Alignment of investment strategy, liquidity profile and redemption policy
SECTION 5. Investment in securitisation positions
Article 50. Definitions
Article 51. Requirements for retained interest
Article 52. Qualitative requirements concerning sponsors and originators
Article 53. Qualitative requirements concerning AIFMs exposed to securitisations
Article 54. Corrective action
Article 55. Grandfathering clause
Article 56. Interpretation
SECTION 6. Organisational requirements — general principles
Article 57. General requirements
Article 58. Electronic data processing
Article 59. Accounting procedures
Article 60. Control by the governing body, senior management and supervisory function
Article 61. Permanent compliance function
Article 62. Permanent internal audit function
Article 63. Personal transactions
Article 64. Recording of portfolio transactions
Article 65. Recording of subscription and redemption orders
Article 66. Recordkeeping requirements
SECTION 7. Valuation
Article 67. Policies and procedures for the valuation of the assets of the AIF
Article 68. Use of models to value assets
Article 69. Consistent application of valuation policies and procedures
Article 70. Periodic review of valuation policies and procedures
Article 71. Review of individual values of assets
Article 72. Calculation of the net asset value per unit or share
Article 73. Professional guarantees
Article 74. Frequency of valuation of assets held by open-ended AIFs
SECTION 8. Delegation of AIFM functions
Article 75. General principles
Article 76. Objective reasons for delegation
Article 77. Features of the delegate
Article 78. Delegation of portfolio or risk management
Article 79. Effective supervision
Article 80. Conflicts of interest
Article 81. Consent and notification of sub-delegation
Article 82. Letter-box entity and AIFM no longer considered to be managing an AIF
CHAPTER IV. DEPOSITARY
SECTION 1. Particulars of the written contract
Article 83. Contractual particulars
SECTION 2. General criteria for assessing the prudential regulation and supervision applicable to depositaries in third countries
Article 84. Criteria for assessing prudential regulation and supervision applicable to a depositary in a third country
SECTION 3. Depositary functions, due diligence duties and segregation obligation
Article 85. Cash monitoring — general requirements
Article 86. Monitoring of the AIF’s cash flows
Article 87. Duties regarding subscriptions
Article 88. Financial instruments to be held in custody
Article 89. Safekeeping duties with regard to assets held in custody
Article 90. Safekeeping duties regarding ownership verification and record keeping
Article 91. Reporting obligations for prime brokers
Article 92. Oversight duties — general requirements
Article 93. Duties regarding subscription and redemptions
Article 94. Duties regarding the valuation of shares/units
Article 95. Duties regarding the carrying out of the AIFM’s instructions
Article 96. Duties regarding the timely settlement of transactions
Article 97. Duties related to the AIF’s income distribution
Article 98. Due diligence
Article 99. Segregation obligation
SECTION 4. Loss of financial instruments, liability discharge and objective reasons
Article 100. Loss of a financial instrument held in custody
Article 101. Liability discharge under Article 21(12) of Directive 2011/61/EU
Article 102. Objective reasons for the depositary to contract a discharge of liability
CHAPTER V. TRANSPARENCY REQUIREMENTS, LEVERAGE, RULES RELATING TO THIRD COUNTRIES AND EXCHANGE OF INFORMATION ON THE POTENTIAL CONSEQUENCES OF AIFM ACTIVITY
SECTION 1. Annual report, disclosure to investors and reporting to competent authorities
Article 103. General principles for the annual report
Article 104. Content and format of the balance sheet or statement of assets and liabilities and of the income and expenditure account
Article 105. Report on the activities of the financial year
Article 106. Material changes
Article 107. Remuneration disclosure
Article 108. Periodic disclosure to investors
Article 109. Regular disclosure to investors
Article 110. Reporting to competent authorities
Article 111. Use of leverage on a ‘substantial basis’
SECTION 2. AIFMs managing leveraged AIFs
Article 112. Restrictions on the management of AIFs
SECTION 3. Specific rules relating to third countries
Article 113. General requirements
Article 114. Mechanisms, instruments and procedures
Article 115. Data protection
SECTION 4. Exchange of information on the potential systemic consequences of AIFM activity
Article 116. Exchange of information on the potential systemic consequences of AIFM activity
CHAPTER VI. FINAL PROVISIONS
Article 117. Entry into force
ANNEX I. Methods of increasing the exposure of an AIF

22.3.2013

Official Journal of the European Union

L 83/1

COMMISSION DELEGATED REGULATION (EU) No 231/2013

of 19 December 2012

supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having

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