European Commission Proposals on the Regulation of Alternative Investment Fund Managers

August 05, 2009

The European Commission (the “Commission”) has published an ambitious and wide-ranging draft Directive (the “Directive”) that proposes the establishment of an authorisation and supervisory regime for Alternative Investment Fund Managers (“AIFM”). The Directive has caused a wave of reaction across Europe.

Charlie McCreevy, the European Commissioner for the Internal Market and Services, summed up the depth of feeling generated by the Directive in his comments, “You will be aware that this proposal has already been the object of intense political debate. The European Parliament and the industries concerned have made their views known. For some, the proposal goes too far. For others, it does not go far enough. I look forward to the constructive debates to come”.

The scope of the Directive as currently drafted is extremely broad and will impact not only those who manage hedge funds and private equity funds, but also asset managers in respect of their management of most if not all forms of collective investment undertaking, both closed- and open-ended, which are not UCITS qualifying.

We are now publishing an in-depth update on the Directive to assist clients with their analysis of the proposals. This update:

  • considers the context of the Commission’s proposals and the Commission’s objectives in formulating them;
  • takes a critical and detailed look at the scope and key elements of the Directive; and
  • considers some likely implications for key categories of AIFM.