The Dutch Authority for the Financial Markets has published a sector letter to all registered managers of alternative investment funds under the registration regime (AIFM-light managers), summarising findings from a recent review and setting out supervisory expectations after identifying multiple instances of non-compliance with legal obligations. Key shortcomings include AIFMD reporting that is not always submitted on time or correctly, essential information documents (Eid) that are often missing or not made available via a website, and deficiencies under the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft) and the Sanctions Act, including weak risk assessments and inadequate customer due diligence. The AFM also points to frequent errors in classifying investors as professional or non-professional, insufficient evidence of compliance with the “less than 150 persons” retail condition where used, and failures to deregister inactive managers or funds in a timely manner. The letter provides practical guidance for firms to test their practices against supervisory expectations and calls on all AIFM-light managers to review it carefully and adjust their operations where needed.
Dutch Authority for the Financial Markets 2025-06-30
Dutch Authority for the Financial Markets issues sector letter highlighting compliance gaps among AIFM-light managers
The Dutch Authority for the Financial Markets issued a sector letter to AIFM-light managers, highlighting non-compliance with legal obligations, including late or incorrect AIFMD reporting and missing essential information documents. The review also found deficiencies in compliance with the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act and the Sanctions Act, as well as errors in investor classification and deregistration processes. The letter offers guidance for aligning with supervisory expectations.