France issued most number of sanctions under AIFMD between 2013 and 2022

by Silvia Saccardi 19 July 2023

France issued the largest amount of financial penalties (€79.14m) between 2013 and 2022, followed by Poland (€14.41m) and Italy (€2.9m), according to ESMA’s latest AIFMD sanctions report.

In contrast, the paper reveals that no penalties were issued under AIFMD in Bulgaria, Denmark, Estonia, Germany, Finland, Norway, Ireland, Latvia, Lithuania, Sweden or Iceland in the same reporting period.

The divergence in sanction implementation is highlighted by the figure that Germany represented the largest segment (33%) of net assets of the EU AIF industry in Q4 2022, followed by France (19%), Luxembourg (15%), Ireland (13%) and the Netherlands (11%).

While France represented the second largest segment of net assets of the EU AIF industry and issued the most number of penalties, Germany represented the largest segment of the industry, yet issued no sanctions.

These findings highlight a lack of harmonisation among EU regulators, with a need to further unify sanction enforcement efforts.

Mark Shaw, partner at Pinsent Masons, commented on the reported divergence between Member States: “There are different approaches to regulation. It seems that Germany, Ireland and, to a lesser extent, Luxembourg, are using enhanced supervisory measures instead of sanctions.”

On the other hand, Shaw clarified that although France tops the sanction charts, fund managers tend not to be dissuaded from domiciling funds there and the number of fines issued overall remains relatively low.

ESMA concludes in the report that there is an ongoing need to foster supervisory convergence and the application of AIFMD across the EU, suggesting its desire to see more sanctions being enforced in the cases of significant regulatory breaches.

This content is free for all our visitors.

Would you like to check out the rest of our fantastic offering? Get in touch with us to discuss our trial and membership options.

Contact us

Categories: NewsFundraising & fund structuringDomicilesODD / DDQOutsourcingLegal & compliance advisoryRegs & ComplianceAIFMDDomicile

22 February 2024

Next stop – carried interest

Liquidity event delays are having an effect on waterfall calculation models

23 February 2024

Intapp makes advancements in generative AI

The cloud-based software solution has released a generative AI-enabled package of features designed to help deal teams with automating the processing of unstructured data

22 February 2024

Comment: What you need to know about ELTIF 2.0

Karma Samdup and Vicki Odette, partners at Haynes & Boone, examine how ELTIF 2.0 aims to unlock private market access for retail investors

22 February 2024

Lantern appoints inaugural CTO

Charlie Markham joins the company as it aims to scale its tech capabilities and international expansion

21 February 2024

LISTEN: Top of the ops: Is the grass evergreener?

A conversation with Eurazeo's Luc Maruenda on setting up evergreen fund structures

21 February 2024

S&P acquires Visible Alpha

Company aims to bolster Capital IQ offering as it explores opportunities in wealth management services