The AIFMD (Alternative Investment Fund Managers Directive) aims at regulating the distribution and marketing of alternative investment funds and their management organisation and operations. The Directive, approved in November 2010 by the European Parliament, was adopted by the EU Council on 27 May 2011 and entered into force on July 21, 2011. Member States were then given 2 years (until July 21, 2013) to incorporate the Directive into national law.
The activities of Alternative Investment Fund Managers (AIFM) are currently regulated by a combination of national regulations and general provisions in EU law, supplemented in some areas by industry standards. It is for this reason that the Directive aims to establish common requirements for the authorization and supervision of AIFM, in order to provide a coherent approach to the related risks and their impact on investors and markets in the European Union (EU); and to allow AIFM to provide services and to market EU funds throughout the single market, subject to compliance with strict requirements.
Custodians/ depositaries :
KPMG can assist depositary banks and asset managers in assessing the impact and initiating an implementation project for AIFMD.
Furthermore, KPMG has a long experience in assisting the fund industry through the implementation of new regulations and can provide the full range of services that Alternative Investment Funds Managers would require to (re)domiciliate Alternative Investment Funds in Luxembourg and to strengthen risk management processes.
Complying with AIFMD is much more than a purely technical regulatory exercise. Compliance projects will have wide-ranging impact on a fund manager’s systems and processes, people and businesses beyond just the risk management, compliance and finance functions. In addition to the technical issues faced by a fund manager in complying with AIFMD, the complexity will also be determined by factors such as the number of countries in which they operate, the flexibility of IT systems, the level of communication between departments and the number of other strategic initiatives competing for budget and resources.
The “Passport” for fund managers under the Directive means that organisations need to comply with an extensive set of regulatory requirements as stated in the Directive and the underlying Regulations.
As the Directive discussions and drafting has progressed KPMG has been an active member of various industry working groups including the current Implementing Measures discussions.
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