New Directive for Managers of Alternative Investment Funds

On 30 April 2009, the Commission made a proposal for a new directive on Alternative Investment Fund Managers ("AIFM"). On 11 November 2010, the European Parliament in consensus with the Council had its first reading of the Commission's proposal. There is political agreement on the final act (the "Directive"). The Directive will affect a significant number of AIFMs that manage and/or market alternative investment funds ("AIFs") within the EU.

SCOPE OF THE DIRECTIVE

The Directive lays down rules for authorization, ongoing operation and transparency of AIFMs which manage and/or market AIFs in the EU. The Directive regulates AIFMs, rather than the AIFs that they manage, as it is the AIFM that is responsible for all key decisions in relation to the AIF management.