AIFMD

Alternative Investment Fund Managers Directive 2011/61/EU (EUR Lex)

Also Commission Delegated Regulation (EU) No 231/2013 (EUR Lex) of 19 December 2012 (the AIFMD Delegated Regulation)

Overview

The Alternative Investment Fund Managers Directive 2011/61/EU ("AIFMD") is a European Union Directive that entered into force on 22 July 2013. The Directive regulates:

EU fund managers that manage alternative investment funds (essentially hedge funds and private equity funds) ("AIFs") (wherever they are based);
fund managers (wherever they are based) that manage AIFs established in the EU; and
fund managers (wherever they are based) that market the units or shares of an AIF in the EU.

Hedge funds and private equity funds and their Investment Managers (AIFMs) have not been subject to the same rules to protect the investing public as mutual (including UCITS) and pension funds and their managers. In general, the lack of financial regulation is seen by some

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to have contributed to the severity of the global financial crisis. The Directive was aimed at redressing this perceived regulatory gap.

Application

AIFMD Depositary requirements are driven by a combination of the domicile of the AIFM and AIF and marketing practices:

EU AIFM of EU AIF: Subject to Full Depositary requirements (Article 21)
EU AIFM of non-EU AIF: Subject to lighter depositary regime (Article 36) – mandatory in order to market the non EU-AIF marketed to EU investors through private placement.
Non-EU AIFM of EU or non-EU AIF: not subject (at least initially) to any depositary requirements irrespective of whether AIF being marketed to EU investors, except potentially if marketing into certain countries (e.g. Germany, Denmark, France "gold plating"), and any other country specific requirements (e.g. Ireland QIAIF requirements)

Depositary lite Regime

AIFMD

This is an article about Alternative Investment Funds Management Directive (2011/61/EU (EUR Lex)) and the AIFMD Implementing Regulation 231/2013 (EUR Lex).