What is the AIFMD passport?
What is the AIFMD passport?
The AIFMD passport allows approved alternative investment fund managers to manage and/or market alternative investment funds (such as hedge funds, private equity, private debt, and real estate funds) across the EU on the basis of a single authorization by their local regulator.
Is UK subject to AIFMD?
Overview. The UK ceased to be a member state of the European Union on 31 January 2020. Amongst other consequences, the UK is no longer directly subject to EU law, including AIFMD. This has a profound impact on the provision of services by AIFMs from the EU into the UK and from the UK into EU Member States.
Who is subject to AIFMD?
The AIFMD was implemented in the EU in 2013. But rather than pass regulation on the funds themselves, the directive’s aim is to regulate the fund managers. Any manager that operates a fund in the EU is subject to AIFMD regulation, regardless of whether it is set up within or outside the union’s borders.
What is the difference between UCITS and AIFMD?
The key difference between the two texts is that UCITS requires a “risk management process” that “enables it to monitor, measure at any time” whereas the AIFMD legislation require “risk management systems” that will be used “in order to identify, measure, manage and monitor all risks … to which each AIF is or may be …
What does AIFM stand for?
The AIFM Directive (Alternative Investment Fund Managers Directive) is a European Directive which has introduced a harmonised regulatory framework to which managers of alternative investment funds must comply as of 22 July 2013.
What is a marketing passport?
The first method is a marketing “passport” which has been introduced by the Alternative Investment Fund Managers Directive (AIFMD) to allow AIFs to be marketed to professional investors across the EU subject to certain conditions being met.
What happens to Ucits after Brexit?
Under the UCITS EU Exit Regulations, UK UCITS retain the ability to book cash in accounts opened with any EEA credit institution, meaning that funds are not required to move their settlement accounts as part of the Brexit transition.
What is the national private placement regime?
The AIFMD National Private Placement Regime (NPPR) is a mechanism to allow the marketing by Alternative Investment Fund Managers (AIFMs) of Alternative Investment Funds (AIFs) that are not allowed to be marketed under the AIFMD domestic marketing or passporting regimes.
Who falls under Aifmd?
An AIFM is defined as an entity that provides, at a minimum, portfolio management and risk management services to one or more AIFs as its regular business irrespective of where the AIFs are located or what legal form the AIFM takes.
Who does UCITS apply to?
UCITS. The UCITS Directive is a detailed, harmonised framework for investment funds that can be sold to retail investors throughout the EU. This means that funds authorised in one Member State can be marketed in another Member State using a passporting mechanism.
Do you need a passport to market an AIF?
Marketing Passport The marketing passport is only available to authorised EU AIFMs marketing EU AIFs to professional investors (at least until 2015). The passport permits an EU AIFM to market units or shares of any EU AIF that it manages to professional investors in the home Member State of the AIFM as well as other EU Member States.
Why does the UK want a new MiFID passport?
According to the FCA, the “large majority of UK investment firms” would prefer a new domestic regime as it provides the potential of “lower regulatory costs, better alignment of requirements to business models, strengthened supervisory dialogue, improved competition and better prudential outcomes”. Be ready for 2021 and act now.
What happens if AIFM does not comply with AIFMD?
If such a change goes ahead regardless or where an unplanned change results in non compliance with AIFMD the AIFM’s home regulator can expressly prohibit the marketing of the EU AIF and take other positive action against the AIF and the AIFM (as further set out in Article 46 of AIFMD).
How long does it take for AIFMD documentation to be transmitted?
Timing The AIFMD prescribes that where the AIFM is being appointed directly (ie without establishing a branch), the AIFM’s home regulator has 1 month to transmit the documentation to the home regulator of the EU AIF. Where the AIFM is establishing a branch, the home regulator has 2 months to transmit the documentation.