CONSOLIDATED VERSION OF DIRECTIVE …

1 VERSION Date 13 August 2013. CONSOLIDATED VERSION OF. DIRECTIVE 2011 /61/EU. OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL. of 8 June 2011 . on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010. (Text with EEA relevance). AND. COMMISSION DELEGATED REGULATION (EU) NO ../ . of 19 December 2012. supplementing DIRECTIVE 2011 /61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (Text with EEA relevance).

2 Allen & Overy 2013. VERSION Date 13 August 2013. This document is the CONSOLIDATED VERSION of the level 1 AIFMD and the level 2 AIFMD Regulation, with the text from the AIFMD Regulation indicated by the blue highlighting. Those Articles of level 1 AIFMD in Chapter VII (Specific rules in relation to Third Countries) that may be introduced in accordance with the arrangement under Articles 67 (Delegated act on the application of Articles 35 and Articles 37 to 41) are indicated in italics. Those Articles 35 and Articles 37 to 41 will only apply, if they do apply, after 22 July 2015.

3 Please note that materials published by ESMA and national regulators are also important in understanding the AIFMD and AIFMD Regulation. In this document Allen & Overy' means Allen & Overy LLP and/or its affiliated undertakings'. Any reference to a partner is used to refer to a member of Allen & Overy LLP or an employee or consultant with equivalent standing and qualifications or an individual with equivalent status in one of Allen & Overy LLP's affiliated undertakings. Allen & Overy LLP or an affiliated undertaking has an office in each of.

4 Abu Dhabi, Amsterdam, Antwerp, Athens, Bangkok, Beijing, Belfast, Bratislava, Brussels, Bucharest (associated office), Budapest, Casablanca, Doha, Dubai, D sseldorf, Frankfurt, Hamburg, Hanoi, Ho Chi Minh City, Hong Kong, Istanbul, Jakarta (associated office), London, Luxembourg, Madrid, Mannheim, Milan, Moscow, Munich, New York, Paris, Perth, Prague, Riyadh (associated office), Rome, S o Paulo, Shanghai, Singapore, Sydney, Tokyo, Warsaw and Washington, 0010023-0016956 Allen & Overy 2013. VERSION Date 13 August 2013. If you have any queries please contact: Matt Huggett Brice Henry Partner UK Partner France Tel: +44 (0)20 3088 4929 Tel: +31 1 40 06 53 66.

5 John Goodhall Frank Herring Partner UK Partner Germany Tel: +44 (0)20 3088 2506 Tel: +49 69 2648 5310. Nick Williams Norbert Wiederholt Partner UK Partner Germany Tel: +44 (0)20 3088 2739 Tel: +49 69 2648 5786. Bob Penn Massimiliano Danusso Partner UK Partner Italy Tel: +44 (0)20 3088 2582 Tel: +39 06 6842 7613. Pavel Shevtsov Pierre Schleimer Partner UK Partner Luxembourg Tel: +44(0)20 3088 4729 Tel: +352 44 44 5 5310. Barbara Stettner Jean-Christian Six Partner USA Partner Luxembourg Tel: +1 202 683 3850 Tel: +352 44 44 5 5710.

6 Chris Salter Ellen Cramer-de Jong Partner USA Partner Netherlands Tel: +1 202 683 3851 Tel: +31 20 674 1468. Marc Ponchione Salvador Ruiz Bachs Partner USA Partner Spain Tel: +1 202 683 3882 Tel: +34 91 782 9923. Jason Denisenko Nick Smith Partner Australia Partner United Arab Emirates Tel: +612 9373 7809 Tel: +971 4426 7128. Alan Ewins Partner Hong Kong Tel: +852 2974 7151. 0010023-0016956 Allen & Overy 2013. VERSION Date 13 August 2013. TABLE OF CONTENTS. Page Recitals .. 1. L2 Regulation Recitals (1) to (3) .. 14. L2 Regulation Recital (136).

7 15. L2 Regulation Recitals (4) to (9) .. 16. L2 Regulation Recitals (10) to (46) .. 17. L2 Regulation Recitals (47) to (64) .. 23. L2 Regulation Recitals (70) to (81) .. 25. L2 Regulation Recitals (65) to (69) .. 27. L2 Regulation Recitals (82) to (93) .. 28. L2 Regulation Recitals (94) to (122) .. 30. L2 Regulation Recitals (123) to (131) .. 36. L2 Regulation Recital (132) .. 38. L2 Regulation Recitals (133) to (135) .. 38. CHAPTER I GENERAL PROVISIONS .. 40. Article 1 Subject 40. Article 2 Scope .. 41. Article 3 Exemptions.

8 41. L2 Article 2 Calculation of a Assets under management .. 42. L2 Article 3 On-going monitoring of assets under management .. 43. L2 Article 4 Occasional breach of the threshold .. 44. L2 Article 5 Information to be provided as part of registration .. 45. Article 4 Definitions .. 46. L2 Article 1 Definitions .. 50. Article 5 Determination of the AIFM .. 52. CHAPTER II AUTHORISATION OF AIFMS .. 52. Article 6 Conditions for taking up activities as AIFM .. 52. Article 7 Application for authorisation .. 53. Article 8 Conditions for granting authorisation.

9 55. Article 9 Initial capital and own funds .. 56. L2 Article 12 Professional liability risks .. 57. L2 Article 13 Qualitative requirements .. 58. L2 Article 14 Additional own funds .. 58. L2 Article 15 Professional indemnity insurance .. 59. Article 10 Changes in the scope of the authorisation .. 60. 0010023-0016956 Allen & Overy 2013. VERSION Date 13 August 2013. Article 11 Withdrawal of the authorisation .. 60. CHAPTER III OPERATING CONDITIONS FOR AIFMS .. 61. Section 1 General Requirements .. 61. Article 12 General principles.

10 61. L2 Article 16 General obligations for competent authorities .. 61. L2 Article 17 Duty to act in best interests .. 61. L2 Article 18 Due diligence .. 62. L2 Article 19 Due diligence when investing in assets of limited liquidity .. 62. L2 Article 21 Acting honestly, fairly and with due skills .. 63. L2 Article 23 Fair treatment .. 63. L2 Article 24 Inducements .. 63. L2 Article 25 Handling of orders .. 64. L2 Article 26 Reporting 64. L2 Article 27 Decisions to deal .. 65. L2 Article 28 Placing 66. L2 Article 29 Aggregation and allocation.