Ongoing Disclosure Requirements for AIFMs Sample Clauses

Ongoing Disclosure Requirements for AIFMs. In addition to the AIF prospectus, AIFMs should comply with a number of ongoing disclosure requirements. According to Article 22(1) of the AIFM Directive, AIFMs are required to publish, for each EU AIF they manage and for each AIF they market in the EU, an annual report. AIFMs are not required to publish half-yearly reports. In general, the report must be presented in a manner that provides ‘materially relevant, reliable, comparable and clear information’ that investors need to understand the particular AIF structure.363 In particular, it should contain a balance sheet or statement of assets and liabilities, an income and expenditure statement, a report on the activities during the financial year, material changes in the pre-contractual investor information (see above), the total amount of remuneration split into fixed and variable remuneration (which should also mention the carried interest paid by the AIF), and the aggregated amount of remuneration broken down by senior management and staff of the AIFM that have a material impact on the risk profile of the AIF.364 The Commission Delegated Regulation on AIFMs provides for additional, mini- mum rules related to the information included in the annual report.365 For example, the regulation, which is to a large extent based on ESMA advice,366 requires that the balance sheet or statement of assets and liabilities should contain an ‘assets’ section, comprising the AIF’s ‘investments’, ‘cash and cash equivalents’, and ‘receivables’, a ‘liabilities’ section, comprising of the AIF’s ‘payables’, ‘borrowings’, and ‘other liabilities’, and a ‘net assets’ section, representing the residual interest in the assets of the AIF after deducting all its liabilities.367 The income and expenditure statement should represent ‘any increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in net assets other than those relating to contributions from investors’.368 Furthermore, it should contain, among other things, an ‘investment income’ section, 362. KPMG/AIMA/MFA, The Cost of Compliance 10 (2013). The research can be found at KPMG’s website: xxxx://xxx.xxxx.xxx/. 363. See Article 103 of the Commission Delegated Regulation on AIFMs. 364. Article 22(2) of the AIFM Directive.