The Alternative Investment Fund Managers Directive (“AIFMD” or “Directive”)1 is European Union (“EU”) legislation aimed at increasing investor protection and reducing systematic risk by creating a harmonised EU framework for managers of alternative investment funds (“AIFMs”) in the EU. AIFMD requires AIFMs to include various transparency disclosures in the Annual Reports of alternative investment funds (“AIFs”) that they manage and/or market in the EU. The AIFMD is supplemented by the Level II Delegated Regulations2 (“Level II Regs”) issued by the European Commission. The AIFMD is required to be transposed into national EU Country law by each respective country. The Level II Regs apply directly in the various EU countries without a requirement for any local enactment.
The purpose of this document is to provide a summary of the implications of AIFMD for Annual Reports of AIFs. It is important to note that the application of the AIFMD requires the exercise of judgement in a number of areas. While we have summarised the requirements and highlighted what we believe to be the main areas of judgement to be considered by the preparers of Annual Reports of AIFs, entities will need to undertake their own review of the AIFMD, the Level II Regs, national transpositions and other guidance. In addition, the information contained in this document is of a general nature and is not intended to address the circumstances of any particular entity.
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