AIFMD is a major new Directive affecting (to a greater or lesser extent) pretty much all alternative investment fund (“AIF”) managers (“AIFMs”) of institutional funds and operators of UCIS.
Quite a bit of our time is being spent on AIFMD implementation projects, particularly early implementation for clients marketing funds around Europe after July 2013 (when the Directive is transposed into national law). Other clients are planning to take advantage of the transitional year (between transposition and July 2014). Careful structuring is needed to ensure that funds’ costs don’t increase unnecessarily, so called ‘grandfathering’ funds aren’t dragged into full compliance where other options are available, and existing tax effects are preserved.
We’re also assiting Depositaries making an entrance into the new market that AIFMD creates for their services.
The one certainty is that this will be a year for change and it will present considerable strategic challenges to existing business models, especially to the professional, third party operator model under which many smaller UCIS and institutional funds are managed in the UK (a model that’s unique in Europe).
Here are a few links to the key documents defining the UK’s implementation of the Directive.
European Union Commission:
- Alternative Investment Fund Managers Directive – 2011/61/EU; and
- Commission Delegated Regulation (the ‘Level 2’ text);
- EU Commission Q&A on AIFMD.
European Securities & Markets Authority (ESMA):
- Guidelines on Key Concepts of AIFMD – December 2012; and
- Guidelines on Sound Remuneration Policies under AIFMD.
UK Financial Services Authority Consultations:
UK Treasury Consultations: