After years in the making, on 22 July 2013 the Alternative Investment Fund Managers Regulations 2013 (SI 20013/1773) came into force thereby implementing the majority of the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFMD). The underlying objective of the AIFMD is to establish an EU-wide harmonised framework for monitoring, reporting on and supervising risks posed by Alternative Investment Fund Managers (AIFMs) and the funds they manage and for strengthening the internal market in alternative funds.
One of the main requirements of the AIFMD as implemented by the Regulations is that all fund managers be authorised by the relevant authorities (in the UK this is the Financial Conduct Authority) in the manager’s Member State. Other highlights of the AIFMD include:
The introduction of specific rules on the marketing of funds in Member States;
The implementation of safeguards to ensure transparency in managers building stakes in unlisted companies;
The right and ability of authorised managers in one Member State managing and marketing funds in other Member States;
The imposition of thresholds and lesser obligations on smaller fund managers.
The UK government is required to review the Regulations and provide a report on its findings and will do so by no later than 22 July 2018. For further information on AIFMD and how Druces LLP can assist you in complying with the Regulations please contact Christopher Axford, Partner, or Antony Cotton, Associate, of Druces LLP’s Corporate & Commercial team.This note does not constitute legal advice. It provides guidance only on the law as it is on 23 July 2013.