What is the AiFMD?
The Alternative Investment Fund Managers Directive (AiFMD) is a directive that applies to all hedge funds, private equity funds, and alternative investment funds within a single regulatory framework – to help create and maintain standards for these funds. The goal of this regulation is to help ensure accountability for all market activities and make it possible to create EU-wide policies, risk-monitoring, and reporting structures.
Why was the AiFMD Introduced?
In the EU, the majority of “standard” mutual funds are called UCITS (Undertakings for Collective Investment in Transferable Securities). These mutual funds are all subject to an existing regulatory scheme.
The AiFMD applies to all non-UCITS funds, including hedge funds, private equity funds, investment trusts, and real estate capital funds – also known as Alternate Investment Funds, or AIFs. These alternative investment structures exist with various regulations in different parts of Europe, which makes for complicated financial regulation and management.
The AiFMD institutes a consistent, EU-wide structure for balancing the risks and rewards of investing in these funds and ensuring there is similar practice in each country within the EU.
The AiFMD is part of a protection scheme for investors that the European Union introduced early in its formation. Since the financial crisis of 2007-2008, it has become even more apparent there is a great need for a consistent body of regulation for AiFs.
The AiFMD attempts to protect investors by regulating every aspect of how these funds are managed, purchased, sold, and advertised. The AiFMD covers procedures for administration, valuation, management, sales, and disclosing data. With thorough regulation, it is hoped that all investors in the EU can engage fairly in the opportunities that AiFs offer.
What Services does Active Offshore Provide in Malta?
Any AiF Manager operating in Malta, or any part of the EU, must now be sure they are complying with every aspect of the AiFMD. Active Offshore are specialists in compliance, support, and risk management, and can help ensure that AiF Manager’s and their businesses comply with the Directive.
The AiFMD sets standards for marketing around raising private capital, remuneration policies, risk monitoring and reporting, and overall accountability. For some AiF managers, learning to comply with all these new policies and new information can be a struggle, and managing this compliance is Active Offshore’s specialty. We work directly with funds and schemes that are self-managed.
Holding a license to act as an AiF does entitle you to some compliance support, but most of the work and change falls to the individual manager. Active Offshore goes a step further to analyse every part of your business from your administration to your policies, to make sure there are no breaches and that everything is reported correctly.
What can Active Offshore do for you?
Active Offshore works every day with some of the most successful and forward-thinking fund managers in the European Union. We are always dialled-in to what is happening in the world of compliance, and this insight has allowed us to help our clients improve and update our business.
What can AiFMD compliance support Malta at Active Offshore do for your business?
Active Offshore goes beyond ensuring your business meets compliance and helps you exceed it. We can help you operate more efficiently, responsibly, and more safely. Our specialists can help ensure full AiFMD compliance in Malta and can help your business operate more effectively. Contact us today!