AIFM Directive Update

The European Securities and Markets Authority ("ESMA") issued its final report to the European Commission regarding the implementation of the Alternative Investment Fund Managers Directive ("AIFMD") on 16 November 2011. This article gives the background to this latest development regarding the AIFMD as well as an overview of the contents of the report itself.

Introduction and Background

The European Commission (the "Commission") first published a proposal for a directive regulating alternative investment fund managers ("AIFMs") at a European level in April 2009. Following numerous counter-proposals and amendments, a draft directive was ultimately agreed in October 2010. This directive was prepared as a principlebased framework document under the Lamfalussy procedure and accordingly, following its implementation, much of the fine detail remained to be determined, as "Level 2" measures. As a result the Commission requested the Committee of European Securities