What is an alternative investment fund under AIFMD?
The term alternative investment fund encompasses a wide range of investment funds that are not already regulated at European level by the UCITS Directive (IP/10/869). They include hedge funds, private equity funds, real estate funds and a wide range of other types of institutional fund.
Which of the following fund types is excluded from the provisions of the AIFM Directive?
An AIFM can be exempted from the AIFMD only if it manages exclusively pension funds. An AIF does not become a pension fund, merely because pension funds invest into it. So managers managing such AIFs are covered by the AIFMD.
What is a sub threshold AIF?
What is a sub-threshold AIFM and why does it matter? AIFMD contains an exemption from its scope of applicability for all AIFMs that manage portfolios of AIFs not meeting the AUM size criteria provided for under the directive. The exemption is generally called in jargon de minimis or sub-threshold.
When was the AIFMD applicable from?
2011
The Alternative Investment Fund Managers Directive (the “AIFMD”) came into force in 2011 and was required to be implemented by the European Economic Area (the “EEA”) member states into their national laws by 2013.
Who falls under AIFMD?
The Alternative Investment Fund Managers Directive (AIFMD) is a regulatory framework that applies to EU-registered hedge funds, private equity funds, and real estate investment funds.
Who does AIFMD apply?
What is AIFMD reporting?
The purpose of AIFMD reporting is to effectively monitor and prevent systemic risk and market disruptions. The reporting obligation applies to registered and authorised AIFMs, and to those AIFMs that are established in a third country (non-EEA country), which market in Finland the AIFs they manage.
Does AIFMD apply to Jersey?
Jersey’s AIFMD regime requires that the Commission approves a Jersey AIF prior to marketing of the Jersey AIF in an EU/EEA State.
Is Jersey covered by AIFMD?
Jersey is outside the European Union and regarded as a “third country” for AIFMD purposes. Jersey has implemented an AIFMD regime only to the extent necessary to allow Jersey funds and Jersey managers to access investors in EU/EEA countries.
When did AIFMD become effective?
Implementation. The directive came into force on 21 July 2011. On 16 November 2011, ESMA issued technical advice to the European Commission (EC) on possible implementation measures for Directive 2011/61/EU.
What is the purpose of AIFMD?
The primary goal of the AIFMD is to protect investors as well as reduce some of the systemic risk that alternative investment funds can pose to the EU and its economy.
What is the purpose of the AIFMD in Europe?
The AIFMD essentially lays down the rules for the authorisation, ongoing operation and transparency of fund managers that manage and/or market alternative investment funds (AIF) in the European Union.
Can a AIF be an open ended fund?
An AIF may be either an open-ended or closed-ended fund and may take any legal form4. There are a number of key exemptions to the scope of the AIFMD.
How does the AIFMD affect the hedge fund industry?
Introduction The AIFMD is having a significant reshaping effect on the alternative investment fund industry in Europe and beyond. The broad scope of the Directive captures many managers of hedge funds, private equity funds, real estate funds and infrastructure funds that are marketed in the EU.
Can a non-EU fund manager manage an AIF?
The Directive requires any fund manager whose regular business is to manage AIFs in the European Union (EU) to be authorised by, or registered with, a competent authority in the EU. This new framework applies to fund managers that have their registered office in the EU with its provisions extending to the management of non-EU AIF by these managers.