The Alternative Investment Fund Managers Directive (“AIFMD”) was proposed in April 2009, apparently as a response to the financial crisis. The stated objective is that “alternative investment fund managers” should register and disclose their activities to increase transparency, improve investor protection and minimise threats to the stability of the financial system. Accordingly, the AIFMD contains proposals for the greater regulation of alternative investment fund managers – even though it is now widely accepted that the fund managers’ contribution to the financial crisis was minimal.

http://www.sjberwin.com/Contents/Publications/pdf/234/5e67853f_c3bf_4ba2_8c64_f754eeaf5fa7.pdf

First published in “RBS Investment Funds Research – Friday Flyer” on 9 April 2010 – Gregg Beechey, associate in the financial markets group at SJ Berwin LLP, who reviews the rationale and potential ramifications of the proposed Alternative Investment Fund Managers Directive.