Why do you need an AIFM?

The primary goal of the AIFMD is to protect investors as well as reduce some of the systemic risk that alternative investment funds can pose to the EU and its economy.

Is an AIFM regulated?

It is important to note that the AIFMD is not regulating AIFs but rather the Managers of these funds. 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.

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.

Is an AIFM a financial institution?

An AIFM is a manager of an alternative investment fund. They include hedge funds, private equity funds, real estate funds and a wide range of other types of institutional fund.

What is a full scope AIFM?

full-scope UK AIFM means a UK AIFM which has a Part 4A permission to carry on the regulated activity of managing an AIF and is not a small authorised UK AIFM; Sample 1.

Can a MiFID firm be an AIFM?

MiFID Top-Up permissions enable an authorised AIFM to manage and market discretionary mandates, or market and provide investment advice regarding funds not currently managed by such AIFM, thereby significantly expanding the scope of its operations.

What is AIFM license?

An Alternative Investment Fund Manager (AIFM) is any legal person whose regular business is managing one or more alternative investment funds (AIFs). AIFMs are governed by the Law of 12 July 2013 on alternative investment fund managers.

Does AIFMD apply?

The AIFMD applies not only to European Union (EU) AIFMs, but also to those non- EU AIFMs that are managing or marketing AIFMs in EU Member States which have transposed the AIFMD into national law.

What is the difference between Ucits and AIFMD?

The key difference between the two texts is that UCITS requires a “risk management process” that “enables it to monitor, measure at any time” whereas the AIFMD legislation require “risk management systems” that will be used “in order to identify, measure, manage and monitor all risks … to which each AIF is or may be …

What qualifies as an alternative investment fund?

An alternative investment is a financial asset that does not fall into one of the conventional equity/income/cash categories. Private equity or venture capital, hedge funds, real property, commodities, and tangible assets are all examples of alternative investments.

Is a small AIFM a MiFID firm?

Small authorised AIFMs. Small authorised AIFMs, which do not perform additional activities other than managing an AIF, will be affected by MiFID II to the extent that the FCA chooses to extend MiFID II requirements to these firms.

Does a small AIFM need a depositary?

Applicability. An AIFM that is fully authorised under AIFMD is required to appoint a single independent depositary in respect of each AIF it manages.

What is an alternative investment manager?

The Alternative Investment Fund Managers Directive ( AIFMD ) is a European Union (EU) regulation that applies to hedge funds, private equity funds, and real estate funds. The institutional funds that fall under the AIFMD were previously outside of EU financial regulations for disclosure…

What is the definition of Alternative Investment?

What is Alt investments?

Investor Alert. Alternative or “alt” mutual funds are publicly offered, SEC-registered funds that use investment strategies that differ from the buy-and-hold strategy typical in the mutual fund industry.

What is an alt fund?

Alternative funds also known as alt funds or liquid alts invest in nontraditional assets or illiquid assets and may employ alternative investment strategies. There is no standard definition for what constitutes an alt fund, but alt funds are often marketed as a way for retail to investors to gain access to hedge funds…

Why do you need an AIFM?