European Union: Fund Management/ REITs

The EU Retail Investment Strategy introduces sweeping reforms to the retail investor protection framework, fundamentally changing how UCITS management companies and AIFMs assess costs...

The Retail Investment Strategy Directive introduces sweeping new obligations for UCITS management companies and AIFMs, requiring mandatory annual assessments to prevent undue costs and comprehensive Value-for-Money evaluations comparing fund costs and performance against peer groups. Management Companies must now demonstrate that costs charged to retail investors are justified and proportionate, with mandatory reimbursement where undue costs are identified and enhanced governance requirements placing direct

EU fund managers are increasingly opting to establish their own Luxembourg-based licensed entities to manage European private funds, known as authorised alternative investment fund managers (AIFMs). This Q&A addresses the practical considerations and key questions that arise when choosing between an in-house AIFM controlled by the fund manager versus engaging a third-party Luxembourg AIFM.