Regulatory zone - Funds sector

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Alternative Investment Fund Managers Directive

After more than a year of intense negotiation and political manoeuvring, the Alternative Investment Fund Managers Directive (the “AIFMD”) was adopted on 11 November 2010 by a plenary vote in the European Parliament. Through this vote, the Parliament gave its official seal of approval to a draft of the Directive proposed by the EU Council of Ministers, and brought to a close a protracted and unpredictable legislative process.

The Directive introduced a sea change in the regulation of the non-retail funds sector and beyond, and will impact managers, depositaries, valuers, prime brokers and investors alike. The Directive came into force in April 2011 and the deadline for its implementation by EU Member States will be in early 2013, at which point various elements of the new framework will be phased in over a staggered timetable.

Click here to read our report on the principal provisions of the AIFMD and an appraisal of its implications for the funds sector.

The European Securities and Markets Authority ("ESMA") published its EU draft technical advices to the European Commission on possible implementing measures relating to the AIFM Directive. We produced a summary - please click here to read our report on the ESMA paper on third country (ie. non-EU) managers, funds, depositaries and delegates (published on 23 August 2011) and click here to read our report on the earlier ESMA paper (which was published on 13 July 2011 and runs to 438 pages) on the other implementing measures.  
 

UCITS IV

The adoption of the UCITS IV Directive was the culmination of a long process of reform, beginning with a review of the existing UCITS regime in 2000.  The review had raised concerns about the increasing fragmentation and complexity of the retail funds industry.  UCITS IV takes the form of a recast of the UCITS framework rather than another set of amendments of the 1985 Directive (UCITS I).  The origins of the new Directive pre-date the financial crisis and the primary objective is to enhance the single-market framework for investment funds.  This contrasts with the Alternative Investment Fund Managers Directive which will apply to managers of non-UCITS Funds; this was more heavily influenced by the desire for a pan-European response to the financial crisis.  Click here for more information.


Click here for further funds and investment management-related materials.

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