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.