European Institute of Management and Finance | AIFM Directive 2011/61/EU Overview
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AIFM Directive 2011/61/EU Overview

AIFM Directive 2011/61/EU Overview

 

The Introduction of Directive 2011/61/EU on Alternative Investment Fund Managers (AIFM Directive) aimed at creating a single, barrier-free marketplace for alternative investment funds in Europe.  Creating a harmonized regulatory and supervisory framework, allowed the marketing of such funds to certain types of investors throughout the European Union simply through home member-state approval which came to be known as the ‘EU Marketing passport’.  In this way, the pan-European market was unlocked for distribution of AIF unit, the same way it did for UCITS in the past.

 

In Cyprus the AIFMD Directive was transposed into domestic law through Law 56(1)/2013 which harmonized the local regulatory framework in line with the EU fund regulations, increasing the country’s competitive position and opening the market for the setup of Cyprus funds which can be marketed domestically and in the EU.

 

In this seminar, we will primarily examine the basic provisions of the AIFM Directive and their practical application for AIF Managers.

 

 

Training Objectives

 

During this programme the basic provisions of the AIFM Directive and their practical application for AIF Managers will be examined.  Participants will benefit from an analysis of:

 

  • the background to the AIFM Directive and the aims it seek to achieve
  • the operating provisions for AIFMs and Depositaries under the Directive
  • the provisions in relation to Authorisation
  • the Transparency provisions relating to the disclosure to investors and Reporting to Competent Authorities
  • rules for the marketing and Managing of AIF units in the EU and Third countries
  • powers and Competencies of Authorities in relation to funds and AIFMs

 

 

Training Outline

 

Part 1: The Legal Framework, Aim and Scope of the AFMD

A general overview of the EU Funds Market by employing graphs and statistics. The background pertaining to the need for a harmonized regulation and the aim and scope of the AIFM Directive.

  • The EU Funds Market: A brief overview of the legal framework governing AIFs in various EU jurisdictions
  • The Background to the Directive: The need for harmonized Regulation across the EU
  • The Aim and Scope of the Directive
  • Definition: What is an ‘AIF’
  • Determination of the AIFM as per Art.5 of the Directive

 

Part 2: Authorization 

An analysis of the Directive’s provisions for authorization and other related provisions.

  • Conditions for taking up Activities as AIFM
  • Application for Authorization
  • Conditions for granting Authorization
  • Provisions for Initial Capital
  • Changes in the scope and withdrawal of Authorization

 

Part 3: Operating Provisions for AIFMs and their Practical Implementation

A close examination of various rules by the Directive on the organization and operation of AIFMs and how are these applied in practice by AIFMs:

  • General Requirements for AIFMS
  • Remuneration Policies
  • Conflicts of Interest and how should they should be approached
  • Risk Management & Liquidity Management provisions for Fund Managers
  • Organizational Requirements for AIFMS
  • Valuation of Assets Principles set out in the Directive
  • Delegation of Functions. What can be delegated by the Fund Manager and the Rules set out in the Directive

 

Part 4: The Depositary

Description of who can act as a Depositary. The functions, responsibilities and liabilities of Depositaries under the Directive:

  • Appointment of the Depositary
  • Who can act as a Depositary
  • Cash Flow Monitoring Functions
  • Assets Safekeeping
  • Oversight Responsibilities
  • Other Duties and Responsibilities
  • Liability

 

Part 5: Transparency Provisions

What information are AIFMs obliged to disclose to investors and to the Regulator/Competent authorities in Reporting.

  • The Annual Report of the AIFM
  • Disclosure to Investors
  • Reporting to the Competent Authorities

 

Part 6: Marketing and Managing AIFS in the EU and Third Countries

An overview of some of the Directive’s provisions on managing and marketing of fund’s units by EU AIFMs throughout the EU.  Provisions for non-EU AIFMS will only be mentioned.

  • Marketing Units of EU AIFs in the home member state of the AIFM
  • Marketing Units of EU AIFs in member states other than the home member state of the AIFM
  • Managing EU AIFs in other member states
  • EU AIFMs managing EU AIFs which are not marketed in EU member states
  • Marketing in the EU with a passport of a non-EU AIF managed by an EU AIFM
  • Marketing in the EU without a passport of non-EU AIFs managed by an EU AIFM
  • Non-EU AIFMS marketing units

 

Part 7: Supervision by Competent Authorities

  • Powers of Competent Authorities
  • Competencies of ESMA
  • Co-operation between supervisory authorities
  • Penalties and Rights to Appeal
  • Retention of DATA
  • Disclosure to Third Countries

 

 

Training Style

 

The seminar presentation will be illustrated and thoroughly explained whilst questions and answers will be addressed and answered throughout.

 

Real time examples will be provided, where available, and participant interaction will be encouraged throughout the training through an exchange of views and personal professional experiences.

 

 

Who Should Attend

 

This course is applicable to all professionals employed in, or seeking to join the Fund Sector, such as:

 

  • Fund Managers
  • Fund Administrators
  • Compliance Officers
  • Depositories
  • Risk Managers
  • Third -party professionals such as Lawyers, Accountants and Fiduciary Service Providers, who wish to gain an insight into Cyprus Funds Law and the Cyprus Funds Industry