What you need to know about the Alternative Investment Funds Managers Directive
Regulating Alternative Investment Fund Managers
The Alternative Investment Funds Managers Directive (AIFMD) was introduced in the EU in July 2011. Designed as part of the wider response to the 2008 financial crisis, it provides a regulatory framework for the previously unregulated Alternative Investment Fund Managers (hedge funds, private equity firms, real estate, and other investment trusts).
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.
REQUIREMENTS
Disclosure requirements are in place to allow both greater transparency for investors, and for the national regulators to better monitor any systemic risk. For example, all AIFMs must complete specific disclosure reports on a T+30 basis at least annually, rising to quarterly depending on the volume of assets under management.
Private equity firms are required to provide further disclosures, regarding controlling influence on non-listed companies. Compliance with AIFMD is required to obtain an EU Financial Services Passport, so hedge funds and private equity funds have every reason to invest in their compliance functions and ensure they are meeting their obligations.
Ensuring compliance with the AIFMD regime continues to be a pressing issue for many firms
SteelEye reduces the complexity and cost of financial compliance and provides a range of regulatory tools that enable effortless compliance with AIFMD. Book a demo to learn more about how SteelEye can help you Comply Smarter™.
