Article first appeared in The International Comparative Legal Guide to: Alternative Investment Funds 2014, 2nd Edition - June 2014, Global Legal Group
Only now is the true impact of implementation of the Alternative Investment Fund Managers Directive (AIFMD) becoming clear. Certainly a much better understanding of the scope of Directive has developed – but things are still not as clear as we might like, especially when trying to apply AIFMD to existing funds or fund models.
Even for those fund managers – and fund advisers such as ourselves – who approach this topic with experience from the more regulated end of the funds market spectrum, AIFMD has thrown up curiosities. Indeed, perhaps the more so because one is trying to fit in new AIFMD regulation on top of an existing regulatory framework.
This chapter seeks to highlight some of the issues which have arisen over the last transitional year, suggest how to take an orderly approach for analysing the impact of AIFMD for any new fund manager or project, and then identify emerging positive consequences – and possible trends and further challenges on the horizon – for those who become authorised Alternative Investment Fund Managers (AIFMs).