AIFM: Alternative Investment Fund Manager

 

After the financial crisis of 2008, the European Council and Commission decided that all relevant actors in the financial markets should be properly regulated and monitored. Since most managers of Alternative Investment Funds were previously unregulated, the Alternative Investment Fund Managers Directive (AIFMD) was formed.

 

Alternative Investment Funds, or AIFs, are defined by the Swedish Alternative Investment Fund Managers Act (2013:561) as a company for collective investments, which receives capital from a number of investors to invest in accordance with a stated investment policy for the benefit of its investors. The consequence of this decision is that many previously unregulated fund managers, such as managers of Private Equity funds and Real Estate funds, are now regulated and must seek authorization by the Financial Supervisory Authority (SE: Finansinspektionen).
The legislation includes organizational requirements such as a risk manager, an independent valuation function, and a compliance officer. There is also a large amount of mandatory reporting, including AIF/AIFM-reports and capital requirements.
If you want to learn more about how the AIFM directive could affect your business and how to stay compliant, please do not hesitate to contact us!