Managers of Alternative Investment Funds (AIFMs) are responsible for the management of over EUR5 trillion of assets across the European Union*. They manage further significant pools of assets via global fund ranges marketed to European sophisticated investors.
AIFMD captures a very broad spectrum of investment funds and asset classes as any investment fund marketed to non-retail investors in Europe is likely to be in scope. AIFMs therefore 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.
The aim of the Alternative Investment Funds Directive (AIFMD), agreed on 8 June 2011, was to establish common requirements governing the authorisation, operations and supervision of AIFMs in order to provide a coherent approach to the related risks and their impact on investors and markets in the European Union. AIFMD was implemented in July 2014.
AIFMD allows for a passporting regime for non-EU AIFMs which has not yet been activated.
AIFMD requires the European Commission to review the application and the scope of AIFMD. On 10 June 2020, the European Commission published its Report on its review of AIFMD, and has now published a detailed consultation paper which closes in Jan 2021.