When the E.U. Alternative Investment Fund Managers Directive (AIFMD) was implemented in E.U. member states, it introduced a harmonized framework for the regulation of alternative investment fund managers, including hedge fund managers. Article 69 of AIFMD required the European Commission (EC) to start a review on the application and the scope of AIFMD, the timing of which has been pushed back, primarily as a result of the U.K.’s vote to leave the E.U. (commonly referred to as Brexit). The EC recently published its long-awaited report assessing the scope and application of AIFMD (Commission Report), and the European Securities and Markets Authority (ESMA) sent a letter to the EC reviewing AIFMD (ESMA Review). It is clear that the Commission Report and ESMA Review are influenced, in part, by what the post-Brexit E.U. asset management landscape should look like. In a guest article, Sidley partner Leonard Ng explores the Commission Report and the ESMA Review, concluding that it is likely that, together, they will form the basis for the policy direction of what will ultimately become “AIFMD II.” For additional commentary from Ng, see “Investment Managers’ Reporting Obligations Under the E.U. Securities Financing Transactions Regulation” (May 28, 2020).