What does an AIFM do?

What does an AIFM do?

An AIFM is defined as an entity that provides, at a minimum, portfolio management and risk management services to one or more AIFs as its regular business irrespective of where the AIFs are located or what legal form the AIFM takes.

What is an AIFM Luxembourg?

An Alternative Investment Fund Manager (AIFM) is any legal person whose regular business is managing one or more alternative investment funds (AIFs). AIFMs are governed by the Law of 12 July 2013 on alternative investment fund managers.

Does an AIF need an AIFM?

Each AIF managed within the scope of the AIFMD shall only have one single AIFM, responsible for the compliance with the requirements of the AIFMD.

Who has to comply with AIFMD?

IMPACT. AIFMD introduces strict compliance requirements around raising capital, risk monitoring and reporting, disclosures, marketing, transparency, and remuneration of AIFMs, and apply to all AIFMs who operate an AIF within the EU, regardless of their domicile.

Can an AIFM manage a UCITS?

No, the services listed in Article 6(4) have to be part of the AIFM’s authorisation to be obtained according to Article 6 AIFMD. Article 6(2) AIFMD specifies that the only additional authorisation that an AIFM can obtain is an authorisation to act as a UCITS management company.

What qualifies as an AIF?

Basic Definition Under AIFMD, an alternative investment fund or “AIF” is: Both open-ended and closed-ended vehicles and listed and un-listed vehicles can be AIFs for the purposes of AIFMD.

What is a full scope AIFM?

A full-scope UK AIFM is a UK AIFM which is authorised in accordance with the UK AIFM regime and, therefore, subject to its full requirements.

What is a master AIF?

an AIF in which another AIF (a feeder AIF) invests or has an exposure in accordance with the definition of ‘feeder AIF’.

What is the difference between Ucits and AIFMD?

The key difference between the two texts is that UCITS requires a “risk management process” that “enables it to monitor, measure at any time” whereas the AIFMD legislation require “risk management systems” that will be used “in order to identify, measure, manage and monitor all risks … to which each AIF is or may be …

Can a MiFID firm manage an AIF?

MiFID II/MiFIR A MiFID firm cannot directly manage a UCITS or an AIF. While a MiFID firm, an UCITS ManCo or an AIFM may all provide the investment management service of portfolio management, only an UCITS ManCo or an AIFM can manage a UCITS or an AIF.