EU investor protection directive goes live

The Alternative Investment Fund Managers Directive comes into force this week, aimed at reinforcing investors’ protection in Europe.

Among its requirements, are:

  • Managers marketing funds to European investors must provide more disclosure to investors and regulators;
  • The application of conduct of business rules, which cover areas including remuneration of managers and minimum capital requirements;
  • All funds must appoint depositaries.

Law firm Goodwin Procter said existing fund managers have up to a year to meet the requirements, but new managers must comply immediately.

Meanwhile, the US Securities and Exchange Commission has lifted an 80-year ban on marketing private funds, amending Rule 506 of Regulation D of the Securities Act, in a move that will help fund managers market their products there.