ID 1207. Responsibility of Member States' competent authorities
The AIFMD is based on the supervision on the AIFM and not on the AIFs, however in several countries funds are also specifically regulated by law and other secondary provisions which state the working mechanism of alternative funds (including general limits to their total borrowings, reporting obligation, valuation of assets, annual accounts and disclosure to investors, crisis resolution measures, etc.). We are wondering – in case of institution of a fund in a country other than the home country of the AIFM – what are the instruments available to the host country Authorities for checking compliance with the host applicable rules concerning the AIF and to request to the AIF for statistical information.
It is the Member States who remain responsible for fund regulation. Hence national law regulating funds in a certain country applies to AIFs etablsihed in that country, irrespective whether they are managed by a domestic AIFM or by an EU AIFM managing that AIF with or without passport, and insofar national law does not prevent the exercise of rights of AIFMs authorised in accordance with this Directive in other Member States. Cooperation between national authorities should be done the basis of articles 45 and 50.
Additionally, Article 45(3) explicitly allows the competent authorities of the host Member State of the AIFM to require the AIFM to provide them with information necessary for the supervision of compliance with applicable rules for which the host country is responsible.