What does an alternative investment fund manager do?

Business conduct including identifying conflicts of interest, fairness toward investors, full and complete disclosure, risk management, and remuneration. Minimum capital requirements including initial capital and total assets under management (AUM) Marketing efforts directed solely at investors within the EU.

Is an AIF regulated?

In fact, the AIF are less regulated than UCITS, in particular regarding the use of leverage, their investment policy, the short-selling practice etc., which are key elements in the determination of the risk level. Therefore, investors may need additional information related thereto.

Is an AIFM a financial institution?

An AIF is a ‘collective investment undertaking’ that is not subject to the UK UCITS regime, and includes hedge funds, private equity funds, retail investment funds, investment companies and real estate funds, among others. …

What is the difference between UCITS and AIFMD?

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 …

When did the alternative investment fund managers directive come into force?

On the 22 July 2013 UK law implementing the Alternative Investment Fund Managers Directive (AIFMD) came into force. It creates a tighter regulatory framework for alternative investment fund managers including managers of hedge funds, private equity firms and investment trusts. For more information please see our AIFMD pages. Was this page helpful?

Who are the managers of alternative investment funds?

Managers of alternative investment funds (AIFMs) are responsible for the management of a significant amount of invested assets in the Union, account for significant amounts of trading in markets for financial instruments, and can exercise an important influence on markets and companies in which they invest.

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 .

What kind of funds are regulated by the AIFMD?

The AIFMD, and the accompanying regulation, does what it says on the tin – it regulates the managers of funds other than Undertakings for Collective Investments in Transferable Securities (UCITS), so-called alternative investment funds or AIFs.