What does the AIFMD set requirements of?

What does the AIFMD set requirements of?

Some of the requirements of the AIFMD include: Business conduct including identifying conflicts of interest, fairness toward investors, full and complete disclosure, risk management, and remuneration. Minimum capital requirements including initial capital and total assets under management (AUM)

What is AIFMD filing?

The purpose of AIFMD reporting is to effectively monitor and prevent systemic risk and market disruptions. The reporting obligation applies to registered and authorised AIFMs, and to those AIFMs that are established in a third country (non-EEA country), which market in Finland the AIFs they manage.

Who falls under AIFMD?

Who is subject to the AIFMD? All alternative investment funds managers established in the European Union, whether they manage EU or non-EU AIF, are subject to the AIFMD. The AIFMD also governs the marketing in the EU of AIF managed by an AIFM established outside the EU.

What is AIFMD Annex IV?

Firms marketing their funds into, or managing funds from, the European Economic Area (EEA) are required to complete transparency reporting, often referred to as Annex IV reporting. This is required regardless of where in the world firms or their funds are based.

When did AIFMD become effective?

Directive 2011/61/EU is a legal act of the European Union on the financial regulation of hedge funds, private equity, real estate funds, and other “Alternative Investment Fund Managers” (AIFMs) in the European Union….Directive 2011/61/EU.

What is an AIF under AIFMD?

For the purposes of the AIFMD regime in the United Kingdom, an AIF is a. collective investment undertaking, including investment compartments of. such an undertaking, which: (1) raises capital from a number of investors, with a view to investing it in. accordance with a defined investment policy for the benefit of …

Who can be an AIFM?

The AIFM can either be an external manager appointed by or on behalf of the AIF, or the AIF itself (any delegate managing assets should not therefore be an AIFM).

What are the types of AIF?

Currently, the AIF Regulations provide for three categories of funds: – Category I Alternative Investment Fund; – Category II Alternative Investment Fund; and – Category III Alternative Investment Fund.

Do AIFs need to be audited?

AIFMD will require audited annual reports to be made available by an AIFM for each AIF that it manages or markets within the EU within six months of each AIFs financial year end.

What is AIFMD passport?

The passport permits an EU AIFM to market units or shares of any EU AIF that it manages to professional investors in the home Member State of the AIFM as well as other EU Member States.

What is a depositary AIFMD?

AIFMD – Depositary Requirements. The Alternative Investment Funds Management Directive (“AIFMD”) requires Alternative Investment Fund Managers (“AIFMs”) to appoint a single. depository to all Alternative Investment Funds (“AIFs”) that they manage and introduces new depository requirements in relation to their AIFs.*

Does AIFMD apply to UK?

While AIFMD no longer binds the UK in its implementation, the UK has put in place a domestic regime regulating the management and marketing of AIFs in the UK, which generally maintains the rules set out in AIFMD as implemented at the end of the Transition Period.

What is Annex IV filing?

Under Annex IV of AIFMD, all authorised and registered fund managers must report transparency information on their funds to local regulators for each country they market in. But this isn’t a simple process – reporting requirements differ for each jurisdiction and the nature of the fund.

What is Form PF?

Form PF is a US Securities and Exchange Commission regulatory filing requirement that mandates private fund advisers report regulatory assets under management to the Financial Stability Oversight Council, in order to monitor risks to the US financial system.

Can an AIFM manage a UCITS?

An AIFM which is also authorized under the UCITS Directive is permitted under both Directives to carry out management of portfolios of investments (individual portfolio management).

Is an AIF regulated?

Acting as the manager of an AIF is a regulated activity, as is establishing, operating (which includes managing) and winding up an unregulated collective investment scheme.

Can a non-EU AIFM manage an EU AIF?

Detailed rules are contained in Article 37 for a non-EU AIFM intending to manage EU AIF or market AIF that it manages. Article 37(1) requires such non-EU AIFM to have prior authorisation to do so from their Member State of reference. Pursuant to Article 37(2) a non-EU AIFM must comply with the Directive.

What is the difference between AIF and CIS?

The difference between a CIS covered by the CIS Regulations, and AIF Regulations will be that the former may invite public subscriptions, while the latter may only privately source their money. It is not regulated by any other SEBI regulations regulating fund management activities.

What qualifies as alternative investment fund?

An alternative investment fund (AIF) is a collective investment in so-called ‘non-standard’ tangible and non-tangible assets whereby investors’ capital is pooled, and the returns are also pooled.

Is a REIT and AIF?

REITs: a REIT may avoid being classified as an AIF by relying on (i) the holding company exemption, (ii) the fact that it has a general commercial or industrial purpose or (iii) that it does not have a defined investment policy.