Get ready for the AIFM

BDO's Neil Fung-On says investment managers are failing to address the risks associated with the Alternative Investment Fund Manager's directive.

In April 2009, the European Commission (EC) published its far-reaching proposals for a directive on Alternative Investment Fund Managers (AIFM). The stated aim was to “provide a clear and consistent framework for the regulation and supervision of managers of alternative investment funds in the EU”. Lack of harmonisation across the EU meant risks were not managed and discouraged the passporting of AIFs across the EU. Following a series of draft reports from the EC and parliament, a final text should be agreed in May 2010 with implementation pencilled in for 2012. The proposals are to d...