More compliance challenges with Alternative Investment Fund Managers Directive

摘要

hen servicing institutional and other professional investors, property fund managers have operated within a light-touch regulation framework -typically by marketing and managing funds known as "unregulated". Under the European Union's new Alternative Investment Fund Managers Directive, managers of alternative investment funds - many of which are unregulated - will need to be authorised, meet capitalisation requirements and, significantly, engage a depositary in the operation of their funds. The directive is expected to take effect in mid-2013 and will apply to existing funds, as well as those launched after the effective date. In this article, I consider the impact of the depositary requirements, and suggest that the structuring of property funds will need to be reviewed.