North American Hedge Funds Not Prepared For New AIFMD Regulations

Beginning on July 22nd, 2013, The Alternative Investment Fund Directive, also known as AIFMD, will go into full effect throughout all 27 EU member states. AIFMD is an EU regulation of alternative investment fund managers and alternative investment funds (AIF) such as hedge funds and private equity funds that are either managed or based within the EU or marketed to EU investors. The directive places them under the jurisdiction of an EU regulatory agency.

Enhancement of investor protection and transparency

At the heart of the directive is the enhancement of investor protection and transparency of alternative investments. Whilst there is already a degree of oversight on European-domiciled funds, the directive goes beyond the requirements...