The AIFMD (Alternative Investment Fund Managers Directive, 2011/61/EU) was implemented in Finland on 15 March 2014. Its field of application is broad, covering private equity, real estate, commodity and hedge fund investment and other corresponding mutual investment activities. The Directive will regulate the management and marketing of alternative investment funds offered to professional investors. The new Directive will make authorisation or registration mandatory for market participants in this area.
Who will be affected by the AIFM Directive?
The Directive is focused on regulating the managers of alternative investment funds. The new regulation will apply to different types of market participants who manage eg hedge funds, private equity funds, real estate funds or commodity funds. The Directive will be applied to entities whose regular business is the management of alternative investment funds and which acquire capital from number of investors for investment in accordance with a defined investment policy in the interests of the investors. The only activities excluded as a matter of principle from the field of application of the AIFMD are those covered by the UCITS Directive 2009/65/EC . If the application criteria of the AIFMD are fulfilled, regulation under the Directive could also be applied to listed companies.
The Directive makes authorisation mandatory and regulates activities
Companies managing alternative investment funds will have to have official authorisation. Fund management companies managing special investment funds, and which have authorisation based on the Investment Funds Directive (85/611/EEC), will have to apply for separate authorisation to manage alternative investment funds coming under the field of application of the AIFM Directive.
The Directive places eg the following requirements on activities:
- risk management and liquidity management
- a separate securities depository for each fund
- arrangement of yield calculations
- reporting of data to supervisory authorities
- disclosure of investor information
FIN-FSA’s releases on AIFM
- 19 March 2012 With the introduction of the AIFM Directive, alternative fund managers were subjected to regulatory supervision (See the article in the newsletter Markkinat 1/2012, in Finnish).
- 18 July 2011 European Securities and Markets Authority is preparing advice to the European Commission for Level 2 regulation concerning alternative investment funds (News release 19/2011)