The British Virgin Islands – AIFMD One Year On

It has been almost a year since the Alternative Investment Fund Managers Directive ("AIFMD") was due to be implemented by the member states of the European Union (the "Member States") on 22 July 2013 and a number of Member States have yet to enact legislation to transpose AIFMD while others, including the United Kingdom, Ireland and Luxembourg, enacted transitional provisions which gave managers of alternative investment funds one year, until 22 July 2014, to determine what steps, if any, need to be taken to ensure compliance with the provisions of AIMFD.

Who does AIFMD affect?

AIFMD seeks to regulate fund managers rather than funds themselves. An AIFM is defined as a legal person whose regular business is the managing of one or more alternative investment funds ("AIFs"). While an AIF is defined as any non-UCITS collective investment undertaking which raises capital from a number of investors, with a view to investing it in accordance with a defined investment