Alternative Investment Fund Managers Directive

• Came into force on the 22nd July 2013.
• Significant regulatory change for the asset management environment throughout Europe.
• Any structure for collective investment which is not a UCITS is likely to be an Alternative Investment Fund (“AIF”);
• All asset managers (including those outside Europe) will be required to be AIFMD compliant in order to distribute their funds in any European member states.
• Availability of private placement after 22 July 2013 will depend on the national private placement regimes (“NPPRs”) applicable in each member state. Member states may move unilaterally to impose stricter NPPRS or simply not permit private placement at all.
• NPPR’s becoming less attractive due to the uncertainty going forward, significant reporting and disclosure requirements and the costs associated with registering AIF’s in each member state.
• Full compliance with AIFMD will however give an AIF access to seamless distribution throughout the entire European Union.

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