On 17 February 2014 ESMA published its first questions and answers paper (Q&A) on the application of AIFMD.  The purpose of the Q&A is to promote common supervisory approaches and practices in the application of AIFMD and its implementing measures.

The Q&A is aimed at competent authorities but are also intended to help AIFMs by clarifying the content of the AIFMD rules, rather than creating an extra layer of requirements. The Q&A is intended to be continually edited and updated as and when new questions are received.

The Q&A paper addresses the following matters:

• First application of the remuneration rules – The Q&A confirms that the AIFMD variable remuneration regime should apply only to full performance periods and should first apply to the first full performance period after the AIFM becomes authorised
• Remuneration rules in the case of delegation of portfolio management or risk management activities
• Documentation and information to be provided in the case of intended marketing in Member States other than the home Member State of the AIFM
• Marketing notification requirements for sub-funds of a previously notified AIF –the Q&A confirms that AIFMs that wish to market new sub-funds of an AIF in a Member State where that AIF has already been notified will need to undertake a new notification procedure via their competent authority
• Reporting by a non-EU AIFM to the competent authorities of Member States in which an AIF is marketed – when a non-EU AIFM reports information to the national competent authorities of a Member State under Article 42, only the AIFs marketed in that Member State have to be taken into account for the purpose of that reporting

Contributed by Vincent Coyne