What is form AIFMD?

What is form 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.

What is the purpose of 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.

Who does AIFMD apply?

The AIFMD applies not only to European Union (EU) AIFMs, but also to those non- EU AIFMs that are managing or marketing AIFMs in EU Member States which have transposed the AIFMD into national law.

What is the difference between AIFMD and UCITS?

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 …

What is a ManCo?

A management company, a.k.a. ManCo, is a company that performs collective portfolio management services (e.g. portfolio management, administration and marketing) of UCITS and/or alternative investment funds. ManCos offer their services to people or entities other than investment funds under a mandate by the investors.

Can a MiFID firm be an AIFM?

MiFID investment firms (other than Exempt CAD firms). In a private equity context, these are typically firms acting as an investment manager (but not an AIFM). These firms will be subject to the entirety of MiFID II.

Is an AIFM a ManCo?

For alternative investment fund (AIF) promoters looking to domicile and market their AIF in Europe, outsourcing core alternative investment fund manager (AIFM) functions to a provider of third-party management company (ManCo) and AIFM services is a quick, cost effective and compliant route to cross-border distribution.

What does the AIFMD mean for hedge funds?

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.

What do you need to know about the AIFMD?

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 AIFMD sets standards for marketing around raising private capital, remuneration policies, risk monitoring, and reporting, as well as overall accountability.

When did the AIFMD directive come into effect?

Alternative investments such as private equity and hedge funds were largely unregulated in the EU before the global financial crisis. The AIFMD was implemented in the EU in 2013. But rather than pass regulation on the funds themselves, the directive’s aim is to regulate the fund managers .

When does an AIFM need to be fully compliant?

A dual regime (EU vs Non EU) will operate for a period of time. A EU AIFM will need to be fully compliant as from 2013 at which point access to the EU passport will be granted. On the other hand, non-EU AIFMs, as from 2013, will only need to comply with transparency provisions of the Directive.