Regulatory authorization we require fund managers to be. Council amending directive 200965ec of the european pa. The alternative investment fund managers aifm directive the directive is sizing up to have profound structural impact on the alternative asset management industry, both in europe and internationally. Scope of this consultation this is an informal discussion paper highlighting and inviting initial views on a number of the high level policy decisions that will need to be taken as part of the transposition of the alternative investment fund managers. The scope of the eu alternative investment fund managers.
Alternative investment fund managers directive aifmd resources. The alternative investment fund managers directive aifmd puts in place a comprehensive framework for the regulation of alternative investment fund managers within europe. Alternative investment fund managers directive 2011 wikipedia. The alternative investment fund managers directive 201161eu or aifmd for short is an. The alternative investment fund managers directive aifmd or the directive came into force on july 22, 20 with certain activities or requirements being governed by transitional provisions for a 12 month period. Alternative investment fund managers directive eu, uk. Background note on the alternative investment fund managers directive over a year in the making, the alternative investment fund managers aifm directive widely known as the hedge funds directive is reaching the final stages of approval. The mutual funds eu connected fund alternative investment fund managers directive regulations, 2016. An alternative investment fund includes all collective investment undertakings defined in directive 201161eu of the european parliament and of the council of 8 june 2011 article 4 1,a. Specific entities that are exempt from the directives are also listed.
The extensive requirements with which aifms must comply are designed to ensure that these managers can manage aifs on a crossborder basis. Act directive 201161eu of the european parliament and of the council of 8 june 2011 on alternative investment fund managers and amending directives 200341ec and 200965ec and regulations ec. This paves the way for a formal vote at the economic and financial affairs council ecofin and. The related issue of the determination of aifms is also discussed under 3. An eu connected fund that requests from the authority an attestation or confirmation of status pursuant to section 22g of the law shall submitto the authority a written confirmation that the information provided pursuant to. Esmas draft technical advice to the european commission on possible implementing measures of the alternative investment fund managers directive. Aifs are funds that are not regulated by the ucits directive. Transposition of the alternative investment fund managers. Summary of alternative investment fund managers directive aifmd. Alternative investment fund managers aifm directive 2011. The transposition of the alternative investment fund managers directive in the united kingdom. Act directive 201161eu of the european parliament and of the council of 8 june 2011 on alternative investment fund managers and amending directives 200341ec and 200965ec and regulations ec no 10602009 and eu no 10952010 oj l 174, 1. Alternative investment fund manager directive aifmd. Directive aifm, marches europeens pour les depositaires, investissements.
Directive 2011 61eu on alternative investment fund managers aifmd had to be implemented by eu member states by 22 july 20. Comparative analysis of certain aspects of regulatory regimes in europe, canada and the united states of america abstract the alternative investment fund managers directive aifmd, adopted by the european union on 11 november 2010, has introduced a harmonized set of rules for alternative. Investment team we require a hedge funds investment team to have long, proven and demonstrable experience in the financial markets. The alternative investment fund managers directive aifmd 201161eu, entered into force on 21st july 2011, with the aim of providing for an internal market for alternative investment. Alternative investment fund managers directive aifmd private equity aifmd is likely to affect most private equity fund managers who manage funds or have investors in the european union if they are. Final text of the level 1 directive on alternative investment fund managers 201161eu published by the european council on may 2011. The directive requires all covered aifms to obtain authorisation, and make various disclosures as a condition of operation. Alternative investment fund managers directive aspirant. However, a preponderance of practitioners and academics in the field argue that, in its present form, the directive is seriously out of touch with both the system of european financial law and. The government published its first consultation paper. Background note on the alternative investment fund managers directive over a year in the making, the alternative investment fund managers aifm directive widely known as the hedge funds directive. The alternative investment fund managers directive aifmd may be the most important european asset management regulation of the early 21st century.
This directive covers managers of alternative investment schemes designed for professional investors. Directive 201161eu on alternative investment funds managers in respect of overreliance on credit ratings,7 and article 92 of directive 201465eu of the european parliament and of the council of 15. Alternative investment fund managers directive aspirant world. Implementation of the alternative investment fund managers directive. Eu ucits directive a ucits fund is a fund intended. The establishment and operation of alternative investment funds is governed by the.
Tax deloitte the alternative investment fund managers directive aifmd, which was adopted by the european council on the 27 may 2011, is not a tax directive. Rules for issuers of alternative investment fund certificates. Introduction the alternative investment fund managers directive aifmd entered into force in july 2011, with the european unions. Summary of alternative investment fund managers directive. Alternative investment fund managers directive aifmd hedge fund managers aifmd is likely to affect most hedge fund managers who manage funds or have investors in the european union if they are identified as the alternative investment fund manager aifm of a particular fund or funds. A confidential response may be requested from us under the freedom of information. The european parliament adopted the directive at its plenary session on 11 november 2010.
Alternative investment fund managers directive aifmd hedge fund managers aifmd is likely to affect most hedge fund managers who manage funds or have investors in the european union if they are. While the main focus of the aifm directive is on fund managers, the directive has a broad scope and impacts not only european union eu and. Germany provides for a smallaifm regime with stricter requirements than the aifmd. The alternative investment fund managers aifm directive is the most contentious piece of financial services legislation to come out of the euro pean union in years. Aifmd is supplemented by a delegated regulation aifmd regulation. Directive 201161eu alternative investment fund managers directive aifmd chapter v aifms managing specific types of aif arts. Having regard to directive 201161eu of the european parliament and of the council of 8 june 2011 on alternative investment fund managers and amending directives 200341ec and 200965ec and regulations ec no 10602009 and eu no 10952010 1, and in particular article 36, article 43, article 99, article 123. Aifmd is supplemented by a delegated regulation aifmd. When first proposed in april 2009 it was met with uproar from participants both within and outside the alternatives industry. Frequently asked questions about eus alternative investment fund. The alternative investment fund managers directive aifmd is a european union eu regulation that applies to hedge funds, private equity funds, and real estate funds.
Following the aifmd, it is required to register or license an alternative investment fund manager. The european commission introduced the alternative investment fund managers directive aifmd with a view to provide a harmonized and stringent regulatory and supervisory framework for the. Scope of this consultation this is an informal discussion paper highlighting and inviting initial views on a. Fca in the uk, sec in the us and comply with the eu directive for alternative investment fund managers.
A regulatory directive with tax implications david capocci partner. Alternative investment fund managers directive aifmd. The alternative investment fund managers directive. Apr 17, 2018 the alternative investment fund managers directive aifmd is a european union eu regulation that applies to hedge funds, private equity funds, and real estate funds. The alternative investment fund managers directive is a regulatory framework for aifms including private equity firms.
This note answers some basic questions about what is to be regulated and why. Alternative investment funds aifs include hedge funds, private equity funds, venture capital firms, commodities. The eu has adopted a package of measures which will implement some important changes to the way in which alternative investment fund managers aifms market their. Report on the operation of the alternative investment fund managers. Guidelines on reporting obligations under articles 33d and 241, 2 and 4 of the aifmd 15 november 20. The alternative investment fund managers directive 201161eu or aifmd for short is an eu law on the financial regulation of hedge funds, private equity, real estate funds, and other alternative. The alternative investment fund managers directive 201161eu or aifmd for short is an eu law on the financial regulation of hedge funds, private equity, real estate funds, and other alternative investment fund managers aifms in the european union. The alternative investment fund managers directive aifmd is a regulatory framework for alternative investment fund managers aifms, including managers of hedge funds, private equity firms and investment trusts. The aifmd was voted by the colegislator in 2011 and entered into application in july 20.
Policy options for implementing the alternative investment. Aifs means collective investment undertakings, including investment compartments thereof, which. The deadline for alternative investment fund manager aifm applications for. Aifmd, euverwahrstellenmarkt, alternative investments, asset management. This has triggered the introduction of measures such as the alternative. Broadly, all funds which are not covered by the directive on undertakings for. Regulatory authorization we require fund managers to be regulated by the relevant authorities eg. The alternative investment fund managers regulations 20.
Alternative investment fund managers aifm directive 201161eu law details information about directive 201161eu including date of entry into force and links to summary and consolidated version. Directive 201161eu on alternative investment fund managers. It will affect a wide range of asset managers, not just traditional hedge and private equity managers, whether they are based in the eu or outside. The eu alternative investment fund managers directive aifmd represents the most significant eu regulation of the alternative investment funds industry in recent times. Dp121 implementation of the alternative investment fund. Directive 201161eu of the european parliament and of the council of 8 june 2011 on alternative. Directive 201161eu of the european parliament and of the council of 8 june 2011 on alternative investment fund managers and amending directives 200341ec and 200965ec and regulations ec no 10602009 and eu no 10952010 text with eea relevance. The european securities and markets authority esma has announced its approval of cooperation arrangements between eu regulators responsible for the supervision of fund. Directive 201161eu alternative investment fund managers. Alternative investment funds aifs include hedge funds, private equity funds, venture capital firms, commodities and real estate funds and are part of the investment management sector. Aifmd regulates the activities of alternative investment fund managers aifms and their alternative investment funds aifs. Its scope is broad and, with a few exceptions, covers the management.
As i mentioned earlier, it will cover a broad section of activities. The deloitte valuation center is your partner of choice for all valuationrelated matters, across the lifecycle of your fund or investment portfolio. December 14, 2016, 5 marine view plaza, suite 400, hoboken nj 07030. Alternative investment fund managers and asset servicers have to adapt to this new environment and either dedicate internal resources or seek an external provider to assist with their valuation needs. European securities and markets authority esma final report. Alternative investment fund managers aifm directive. These regulations implement in part directive 201161eu of the european parliament and of the council on alternative investment fund managers aifmd, regulation eu no 23120 supplementing. Alternative investment fund managers directive 2011. The alternative investment funds industry is shortly to be. Implementation of the alternative investment fund managers. Directive on alternative investment fund managers chapter 1. The aifmd imposes harmonised conditions and requirements on the structure and operation of alternative investment fund managers. The aifmd a regulatory directive with tax implications.
Alternative investment fund managers directive aifmd private equity aifmd is likely to affect most private equity fund managers who manage funds or have investors in the european union if they are identified as the alternative investment fund manager aifm of a particular fund or funds. For the purpose of this directive, the following definitions shall apply. Is aifmd the new gold standard for alternative nonucits funds in the next wave of regulation and investor. The alternative investment fund managers directive aifmd. Alternative investment funds aif and their managers aifm prompted the european commission to issue a draft proposal for an aifmd on 30 april 2009. The eu has adopted a package of measures which will implement some important changes to the way in which alternative investment fund managers aifms market their funds crossborder in the eea. Gibson dunn changes to marketing alternative investment. Overview introduction this note provides a brief overview of the key provisions of the alternative investment fund managers directive the aifmd.
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