Industry impact

Author: | Published: 1 Sep 2009

This proposed Directive on Alternative Investment Fund Managers (AIFM) marks the first attempt to create a comprehensive and effective supervisory and regulatory framework for AIFM in the EU by imposing on European investment managers of non-Ucits investment funds a common set of rules in terms of licensing and supervision. In return, AIFM benefit from a European passport for cross-border distribution to EU professional investors.

Produced in record time, the proposal is now in the hands of the European Parliament, where it is expected to be subject to stormy political negotiations. From a Luxembourg perspective, this Directive creates big opportunities, and, if ratified, could have a big effect on the alternative investment industry. Indeed, the distribution of offshore funds to professional investors (as defined by Mifid) will only be possible after three years following the Directive's ratification. This could, by accelerating the re-domiciliation of offshore funds to the Grand Duchy, strengthen...