The Draft Alternative Investment Fund Managers Directive (AIFM)

Splitting the Difference

Following a protracted period of intense lobbying at European level, the European Parliament and the EU Council recently finalised their respective drafts of the Alternative Investment Fund Managers Directive.

There are currently a number of differences between the two draft texts on areas such as the treatment of third-country funds, delegation requirements and depositary liability, and further efforts are needed to try and reconcile the two competing texts. Sarah Lyons reports.

The aim of the Alternative Investment Fund Managers Directive is to enhance the transparency of the activities of alternative investment fund managers and the funds they manage. The Directive aims to regulate alternative fund managers, rather than the alternative investment funds themselves. However the provisions of the Directive indirectly impose requirements on alternative investment funds, including requirements for valuation, risk management and