The Alternative Investment Fund Managers Directive (AIFMD) is a directive of the European Union (EU) that regulates the activities of alternative investment fund managers (AIFMs). The directive came into force on 21 July 2011.
AIFMD requires AIFMs to be authorised and to comply with certain rules, including rules on organisation, risk management, capital requirements, and transparency. The directive also gives national supervisory authorities the power to impose additional requirements on AIFMs.
The directive is designed to improve the regulation of alternative investment funds (AIFs), which are often complex and opaque, and to mitigate the risks that they pose to the financial system. The directive is also intended to level the playing field between AIFMs and other types of financial institutions, such as investment banks.
The AIFMD is one of the key components of the EU's response to the global financial crisis. Is a private equity fund an AIF? A private equity fund is not an AIF.
How are alternative investments regulated?
Alternative investments are subject to a variety of regulations at both the federal and state level. The most important regulatory body for alternative investments is the Securities and Exchange Commission (SEC). The SEC is responsible for regulating the offer and sale of securities, and has authority over all investment vehicles, including alternative investments.
The SEC has a number of rules and regulations that govern the offer and sale of securities, and these rules apply to all investment vehicles, including alternative investments. For example, the SEC requires that all securities offerings be registered with the SEC, and that all offering documents contain certain information about the security, the issuer, and the risks involved in investing.
In addition to the SEC, there are a number of other federal and state regulatory bodies that have jurisdiction over different aspects of the alternative investment industry. For example, the Commodity Futures Trading Commission (CFTC) regulates futures contracts and commodity options, while the Financial Industry Regulatory Authority (FINRA) regulates broker-dealers.
Alternative investments are also subject to taxation at both the federal and state level. For example, capital gains from the sale of alternative investments are subject to federal and state capital gains taxes.
What makes a fund an AIF?
A fund is an AIF if it meets all of the following criteria:
1. The fund is organized as a corporation, partnership, or trust.
2. The fund is organized under the laws of the United States or another country.
3. The fund has a stated investment objective.
4. The fund invests in assets that are not readily marketable.
5. The fund is not registered with the SEC.
What is the difference between a UCITS and an AIF? There are several key differences between UCITS and AIFs. UCITS are more heavily regulated than AIFs, and are subject to more restrictions on their investment activities. For example, UCITS are generally only allowed to invest in certain types of financial instruments, and are subject to limits on the amount of leverage they can use. AIFs, on the other hand, are not subject to as many restrictions, and can therefore invest in a wider range of assets. Another key difference is that UCITS are required to be marketed to retail investors, while AIFs can be marketed to both retail and institutional investors. Finally, UCITS are subject to deposit insurance, while AIFs are not. Are alternative investment funds regulated? Yes, alternative investment funds are regulated by the SEC and other regulatory bodies.