The problematic draft directive on alternative investment fund managers

The European Commission has published its draft directive on Alternative Investment Fund Managers (AIFM directive).

Rather than introduce European legislation for Alternative Investment Funds (AIFs), the AIFM directive introduces an authorisation and supervisory regime for Alternative Investment Fund Managers (AIFMs). The new regime targets AIFMs providing management or marketing services to AIFs from within the EU, other than AIFMs managing AIF portfolios that: have total assets of less than €100m; or are unleveraged, have total assets of less than €500m and do not permit redemptions for the first five years. Ucits, EU-authorised credit institutions and pension funds are also exempted. So, the dir...