Are AIFs regulated?
In fact, the AIF are less regulated than UCITS, in particular regarding the use of leverage, their investment policy, the short-selling practice etc., which are key elements in the determination of the risk level.
What do AIFM do?
The primary goal of the AIFMD is to protect investors as well as reduce some of the systemic risk that alternative investment funds can pose to the EU and its economy.
Can an AIFM manage a UCITS?
No, the services listed in Article 6(4) have to be part of the AIFM’s authorisation to be obtained according to Article 6 AIFMD. Article 6(2) AIFMD specifies that the only additional authorisation that an AIFM can obtain is an authorisation to act as a UCITS management company.
What does AIFM stand for?
The AIFM Directive (Alternative Investment Fund Managers Directive) is a European Directive which has introduced a harmonised regulatory framework to which managers of alternative investment funds must comply as of 22 July 2013.
What are AIFM fees?
Ireland offers a very attractive taxation regime for AIFMs with the AIFM being taxed at either 12.5% or 25% on its profits. investment by the AIFM in an AIF which it manages may also qualify for the 12.5% tax rate.
Can a UCITS be an AIF?
A CCF can be established as a UCITS fund (Undertakings for Collective Investment in Transferable Securities) or an AIF (Alternative Investment Fund).
What is a UK AIF?
An AIF is a collective investment undertaking which raises capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors.
Why does UCITS fund?
UCITS stands for Undertakings for the Collective Investment in Transferable Securities. This refers to a regulatory framework that allows for the sale of cross-Europe mutual funds. UCITS funds are perceived as safe and well-regulated investments and are popular among many investors looking to invest across Europe.
What is the purpose of the UK AIFMD?
The UK AIFMD establishes a framework for monitoring and supervising risks posed by UK AIFMs and the AIFs they manage, and for strengthening the UK market in alternative funds. It also includes requirements for firms acting as a depositary for an AIF.
What is the difference between an AIF and an AIFM?
Its focus is on regulating the UK AIFM rather than the AIF. An AIF is a ‘collective investment undertaking’ that is not subject to the UK UCITS regime, and includes hedge funds, private equity funds, retail investment funds, investment companies and real estate funds, among others.
When do hedge funds need to comply with AIFMD?
AIFMD requires hedge fund managers to obtain authorisation, meet on- going operating conditions and comply with transparency and reporting requirements in order to manage and market hedge funds within the EU. Entities within scope will need to start complying from 22 July 2013.
Who is required to appoint a depositary to an AIFM?
An AIFM that is fully authorised under AIFMD is required to appoint a single independent depositary in respect of each AIF it manages.