Alternative Investment Fund Managers Directive (AIFMD)

The EU's AIFMD entered into force in mid-2011. It is designed to protect investors and regulate hedge funds, private equity, real estate funds, and other Alternative Investment Fund Managers (AIFMs).

The Directive requires AIFMs to be authorised, and transparent as a condition of operation. Its scope covers portfolio management and risk management and other functions including (but not limited to) depositary, valuation, administration, reporting to investors and regulators, and marketing of alternative investment funds (AIFs). Its focus is on regulating the Alternative Investment Fund Manager (AIFM), rather than the AIF.

Since its implementation in 2013, the AIFMD has triggered many new challenges. It requires compliance activities, such as creating an automated process in a secure environment, generating reports with high quality standards, tracking each regulator's local requirements, and easily retrieving sources for the benefit of ESMA audits.

The AIFMD contains many technical requirements, some of which may require significant modifications to operating structures and organisation. Understanding the regulation and its impact can be challenging, especially when there is a lack of detailed guidance.

PwC's reporting services cover the whole value chain in an integrated way, from reviewing inflow data to filing reports with the regulators. We generate, review and file the required AIFMD reports by specified deadlines. We diligently ensure that we meet ESMA and local requirements, and follow strong control processes at each step of the value chain.

Our multi-disciplinary team of professionals in business strategy, operation and structuring, regulatory compliance, tax, remuneration and assurance services are always ready to assist you. We identify and assess the numerous impacts of the Directive on your operations, and develop an integrated response to the AIFMD.