Welcome to Swiss Funds & Asset Management Association SFAMA


Fund market statistics - August 2020

SFAMA Media Release 13/2020

Swiss fund market posts further growth

ESMA addresses delegation of portfolio management functions in context of AIFMD review

On 18 August 2020, the European Securities and Markets Authority (ESMA) published a letter addressed to the European Commission concerning the review of the Alternative Investment Fund Managers Directive (AIFMD). The letter covers topics including the delegation of portfolio management functions to third parties and the question of substance. In particular, it states that delegation to third parties outside the EU is likely to increase following Brexit, which in ESMA’s view may increase operational and supervisory risks and raise questions as to whether AIFs and UCITS can still be effectively managed by the licensed AIFM or UCITS management companies.

Understandably, ESMA’s statements have sparked debate among our members. They should be assessed first and foremost in the context of the latest political developments, especially as regards Brexit. We firmly believe that the existing delegation model functions well and that it is very important not only for asset managers from third countries, but also for the success of the AIFM/UCITS model itself as well as for markets and investors within the EU. It is therefore essential to retain it. We will continue to keep a close eye on developments and play an active role in this discussion via the usual EFAMA channels. We will keep our members up to date on developments, in particular at our next information events in November.

Link to ESMA release