Implementation of the AIFM Directive in the main European funds jurisdictions: where are we now ?

The European asset management industry is deeply affected by the implementation of the European Directive EC/2011/61 dated 8 June 2011 (the « AIFM directive »). Indeed, EU Member States now enjoy, a uniform legislation, in respect all alternative funds, irrespective of their legal form or investment strategy. This evolution may have strongly changed the existing regulations across countries.

Also, beyond these principles, the AIFM directive has allowed some flexibility to EU States. Thus, while most European countries have implemented this directive into their national legislation, this transposition is not necessarily homogeneous and some key differences are worth noting.

It is therefore appropriate, in a pan-European approach, in particular with a view to benefit from the product and/or manager passport under the AIFM directive, to focus on the treatment of the directive’s key aspects in the principal European jurisdictions for alternative funds:

• The conditions to be qualified as alternative investment fund manager and license’s conditions;
• The rules applicable to licensed managers: remuneration, conflict of interests, risk management, internal organization, evaluation;
• The conditions applicable to management’s delegation;
• The rules applicable to custodians, but also to advisors and distributors;
• The disclosure requirements and the leverage ratio calculation;
• The terms of use of management and marketing passports to be issued to managers.

Focus

Implementation status, opportunities and obstacles in the following countries:

• France
• Germany
• Ireland
• Luxembourg
• The Netherlands
• United Kingdom