The EU Alternative Investment Fund Managers Directive (the "AIFMD"), approved by the European Parliament in June 2011, established a new regulatory regime for EU and non-EU investment managers (including US investment advisers) that, among other activities, manage alternative investment funds ("AIFs") and/or market AIFs to investors within the EU.
Each EU Member State was given until July 22, 2013 (the "Transposition Deadline") to implement the AIFMD into national law.
In addition, a one-year transition period under the AIFMD enabled non-EU AIF managers, including US investment advisers ("AIFMs") that had marketed AIFs to EU investors prior to the Transposition Deadline to continue such activities under the pre-AIFMD regime in certain jurisdictions until July 21, 2014. AIFMs with aggregate assets under management of: (i) €500 million (provided their AIFs are not leveraged and investors therein have no redemption rights in the first five years following their investment) or (ii) €100 million (if their AIFs use leverage) are subject to reduced requirements with respect to the marketing of AIFs to EU investors.
This alert is intended to help non-EU AIFMs determine whether they are subject to the AIFMD and to provide such managers with an overview of their regulatory and compliance responsibilities after July 21, 2014.
Download the AIFMD reference flowchart.
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