AIFMD II: Key Changes To The EU AIF Framework

Over recent years, the alternative investment funds ("AIFs") market in the European Union has experienced significant growth. Due to this growth, and while the objective of safeguarding investor protection has been achieved at large, the need for further regulatory improvements to the framework governing alternative investment fund managers ("AIFMs") was present.

To address the concerns, the European Union adopted a revised regulatory framework through Directive (EU) 2024/927 of the European Parliament and of the Council, amending Directives 2011/61/EU and 2009/65/EC ("the Directive"). The updated framework introduces a series of targeted amendments for AIFMS addressing, inter alia, delegation arrangements, depositary services, and loan origination funds. At the same time, the directive introduces changes to the regulatory regime governing Undertakings for Collective Investment in Transferable Securities (UCITS), with the aim of enhancing consistency between the frameworks