This document outlines the prudential supervision responsibilities of the competent authorities concerning Alternative Investment Fund Managers (AIFMs). The home Member State retains primary supervisory authority, while host Member States oversee compliance with specific articles when AIFMs operate branches or market funds locally. Notably, host authorities can require necessary compliance information, ensuring it aligns with local regulations.

In cases of non-compliance or failure to provide requested information, host authorities may escalate matters to the home's competent authorities, who must act promptly. If persistent breaches jeopardise investor interests or market stability, host authorities are empowered to intervene, including restricting further marketing activities.