Is AIFMD mandatory?
Compliance with AIFMD is required in order to get a passport to sell financial services across the EU market. Marketing efforts directed solely at investors within the EU. How investments are safeguarded—through custodians and depositaries.
What is Article 42 of the AIFMD?
Pursuant to article 42 of the Alternative Investment Fund Managers Directive (“AIFMD” or “the Directive”) non-EU/Asian Alternative Investment Fund Managers (“AIFMs”), as from 2013, can only market the non-EU/Asian Alternative Investment Funds (“AIFs”) they manage to EU investors via National Private Placement Regimes ( …
Who is subject to AIFMD?
The AIFM will be the legal entity with ultimate responsibility for risk portfolio management of the fund. If a firm is appointed by or on behalf of an AIF to bear responsibility for these functions, it will be the AIFM. If it is only a delegate of a person so appointed, it will not be the AIFM.
What qualifies as an AIF?
The term ‘alternative investment fund’ or ‘AIF’ refers to any vehicle established for the purpose of raising capital from a number of different investors with an aim to invest these funds into assets to generate favourable returns.
Who does AIFMD apply?
The AIFMD applies to alternative investment funds (“AIFs”) and their managers (“AIFMs”) where the management and/or marketing of the AIF takes place in any part of the EEA.
Do AIFs need to be audited?
The accounting information given in the annual report must be audited by an EEA auditor. For non-EU AIFs, certain individual Member States have allowed the annual report to be audited by an auditor meeting international standards and based in the country where the non-EU AIF has its registered office.
What is AIFMD reporting?
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.
What is a professional investor under AIFMD?
Definition of Professional Investor in the AIFMD Under the AIFMD, a “‘professional investor’ means an investor which is considered to be a professional client or may, on request, be treated as a professional client within the meaning of Annex II to Directive 2004/39/EC”.
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 …
Is feeder fund an AIF?
The offshore fund (feeder vehicle) would then invest in the Indian AIF (the master fund), such that all the capital commitments are aggregated and pooled at the Indian AIF level. In addition to the above, there can be other variations to the investment structure depending on the commercials involved.
When was the AIFMD applicable from?
The Alternative Investment Fund Managers Directive (the “AIFMD”) came into force in 2011 and was required to be implemented by the European Economic Area (the “EEA”) member states into their national laws by 2013.
What is Annex IV reporting AIFMD?
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 reporting information on a feeder AIF do I need to look through?
When reporting information on a feeder AIF in a master/feeder structure, subject to specific requirements issued by particular Member States, it is not necessary to look through to the master AIF’s assets and trading activity.
What is the composition of the master feeder structure?
Composition of Master-Feeders. The average master-feeder structure involves one offshore master fund with one onshore feeder and one offshore feeder. Feeder funds investing in the same master fund have the option of choice and variation.
Which AIFs are in scope of the AIFMD?
AIFs are in scope of the AIFMD if one of the following three criteria is fulfilled: 1. AIF domiciled in the EU 2. AIF marketed in the EU 3. AIFM domiciled in the EU Scope
Can an AIFM market an EU feeder AIF in another EU country?
Answer 5: No. Article 31(1), second subparagraph, allows an EU AIFM to market an EU feeder AIF in the home Member State of the AIFM as long as it has an EU master AIF which is managed by an authorised EU AIFM. Marketing of an EU feeder AIF with a non-EU master AIF is subject to Article 36(1) of AIFMD.