Conditions for light managers (registration regime)
The manager of an alternative investment vehicle under the registration regime (light manager) must comply with the registration conditions on an ongoing basis. If the light manager no longer complies with the exemption conditions (indicated upon registration), the light manager is required to apply for a licence. Light managers may not amend their specific exemption conditions after registration commences.
Under scope and regimes you can read whether you fall under the licence regime or the registration regime (light regime). You can apply for a licence or registration via our AFM Portal
Reporting obligations
The light manager is required to report annually on the main financial instruments in which it trades and the principal exposures and principal concentrations of the investment funds it manages.
Relevant legislation and regulations
The light manager is required to comply with the following legislation and regulations on an ongoing basis. The AFM emphasises that the following overview, both with regard to the legislation and regulations described as well as their explanations, is not exhaustive.
• The Money Laundering and Terrorist Financing (Prevention) Act (Wet ter voorkoming van witwassen en financiering van terrorisme; Wwft) and Sanctions Act 1977 (Sanctiewet 1977; Sw). Under Wwft you can read what this means for the light manager. For more information, please consult the Wwft and Sw guidance.
• Regulation (EU) No 1286/2014 on key information documents for packaged retail investment products and insurance-based investment products (PRIIPs Regulation), as well as the underlying Delegated Regulation. When a light manager offers packaged retail investment products (or insurance-based investment products) to retail investors, it must prepare a key information document (KID) prior to this, make it available to retail investors and publish it on its website.
• The Consumer Protection (Enforcement) Act (Wet handhaving consumentenbescherming; Whc) and the Unfair Commercial Practices Act (Wet op oneerlijke handelspraktijken; Wohp). If a light manager offers to consumers, it may not engage in unfair commercial practices. This includes misleading or aggressive commercial practices.
• Regulation (EU) No 596/2014 on Market Abuse (MAR), as well as the underlying implementing regulations and delegated regulations. For example, the light manager trading in financial instruments should have in place effective arrangements, systems and procedures (a monitoring system) for detecting and reporting suspicious orders and transactions. If there is reasonable suspicion of possible insider trading or market manipulation (or attempted insider trading), a report must be made to the AFM.
• Regulation (EU) 1011/2016 on indices used as benchmarks for financial instruments and financial contracts or to measure the performance of investment funds (BMR). A light manager must put a plan of measures in writing. This states what action will be taken if a benchmark is substantively changed or is no longer offered.
• Regulation (EU) 2019/2088 on sustainability disclosure in the financial services sector as well as the future underlying implementing regulations and delegated regulations. A manager subject to the AIFMD registration regime must provide the required pre-contractual information (Article 6 SFDR and, where applicable, Articles 7, 8 and 9 SFDR) to (potential) investors and is obliged to make available the periodic information required under the SFDR (Article 11 SFDR). The registered managers must also make the required information from Articles 3, 4, 5 and 10 of the SFDR available on their websites. If the administrator does not have a website, it must be created.