Examples of AIFM Regulation in a sentence
Although certain requirements in the AIFM Regulation are similar to those which apply under the CRR, they are not identical.
In particular, the AIFM Regulation requires AIFMs to ensure that the sponsor or originator of a securitisation transaction meets certain underwriting and originating criteria in granting credit, and imposes more extensive due diligence requirements on AIFMs investing in securitisations than the ones are imposed on prospective investors under the CRR.
The method of retention is in the form of an originator’s interest (as described in Article 405(1)(b) of the CRR, Article 51(1)(b) of the AIFM Regulation and Article 254(2)(b) of the Solvency II Regulation), which form has not changed and will not change and which retention will not be subject to any credit risk mitigation, any short position or any other hedge and will not be sold, except as permitted by the EEA Risk Retention Rules.
As a result, a leverage ratio of greater than 1 does not necessarily signify synthetic or physical borrowing by the Sub-Fund.The Sub-Fund’s exposure under the commitment method is calculated as the sum of the absolute values of all positions, including derivatives, after the application of hedging, netting and offsetting arrangements, as described in the AIFM Regulation.
The requirements of the AIFM Regulation apply to new securitisations issued on or after 1 January 2011.