The Alternative Investment Fund Managers Directive (AIFMD) provides for a lighter regime applicable to small AIFMs.
In order to qualify as a de minimis AIFM, the manager must either directly or indirectly manage portfolios of AIFs whose assets under management (AuM) collectively do not exceed either:
Once authorised the de minimis AIFM is exempt from complying with the provisions of the AIFMD except for certain reporting requirements to the MFSA in relation to:
In order to ensure the de minimis AIFM maintains its status at all times, it is required to have procedures in place to monitor the total value of AuM. If the total value of AuM exceeds the prescribed thresholds and the AIFM deems that the situation is not temporary, it is required to apply for an extension to its de minimis licence to a full AIFM licence.
It is also important to note that although an AIFM satisfies the thresholds applicable to a de minimis AIFM, it may nevertheless opt into the AIFMD framework. It would thus be required to comply with all the obligations applicable to full-scope AIFMs, but it would also be able to benefit from the EU passporting rights deriving from the AIFMD which are not applicable to de minimis AIFMs.
For more information or if you have any questions, please feel free to contact Dr Cherise Abela Grech.