General information for AIFM / Collective investment schemes
As a result of the AIFM Directive, alternative investment fund managers within the EU are (largely) subject to the same rules.
Broad scope
The AIFM Directive has a broad scope. In principle, the Directive applies to all managers of one or more alternative investment funds. These are the collective investment vehicles that are not regarded as undertakings for collective investment in transferable securities (UCITS) and include private equity-, hedge-, infrastructure-, real estate-, equity- and bond funds.
What does the AIFM Directive mean for managers?
The AIFM Directive stipulates that a manager cannot manage an alternative investment fund and/or offer units therein to investors without a licence.
The granting of the licence is subject to a large number of requirements. For instance, there are requirements on minimum capital and day-to-day policymakers must be fit and proper. In addition, rules include having a controlled and sound business operation, a depositary and appropriate remuneration policies.
In addition to the rules for the licence, the Directive imposes ongoing requirements on the manager. For example, with regard to avoiding conflicts of interest, conducting appropriate risk and liquidity management, ensuring independent asset valuation and various transparency obligations.
Duties of the AFM and DNB
The AFM is responsible for the authorisation and ongoing supervision. Besides behavioural requirements, there are also prudential requirements, such as minimum capital and leveraged investing. DNB monitors compliance with prudential rules.