AI Summary of Article 8 Conditions for granting authorisation
The competent authorities of an AIFM's home Member State must verify several conditions before granting authorisation. These include the AIFM's ability to comply with the Directive, adequate initial capital, the reputation and experience of key personnel, suitability of significant shareholders, and the alignment of the head and registered offices within the same Member State.
Moreover, consultation with relevant authorities in other Member States is mandatory for certain AIFM structures. Authorisation may be refused if close links with external entities hinder supervisory effectiveness. ESMA is also tasked with developing regulatory standards to ensure uniform compliance and effective oversight.
Article 8 Conditions for granting authorisation
1. The competent authorities of the home Member State of the AIFM shall not grant authorisation unless:
(a) they are satisfied that the AIFM will be able to meet the conditions of this Directive;
(b) the AIFM has sufficient initial capital and own funds in accordance with Article 9;
(c) the persons who effectively conduct the business of the AIFM are of sufficiently good repute and are sufficiently experienced also in relation to the investment strategies pursued by the AIF managed by the AIFM, the names of those persons and of every person succeeding them in the office are communicated forthwith to the competent authorities of the home Member States of the AIFM and the conduct of the business of the AIFM is decided by at least two natural persons meeting such conditions who either are employed full-time by that AIFM or are executive members or members of the governing body of the AIFM committed full-time to conducting the business of that AIFM, and who are domiciled in the Union;