The deadline of 22 July 2013 for EU Member States to transpose the Alternative Investment Fund Managers Directive (“AIFMD”) into national law is fast approaching.

The AIFMD regulates the management, administration and marketing of alternative investment funds (“AIFs”) by supervising the Alternative Investment Fund Manager (“AIFM”) managing the AIF. The AIFMD establishes an EU-wide framework for monitoring and supervising risks posed by AIFMs, and for strengthening the alternative funds market.

Whilst the competent authorities in the UK and Germany have made significant progress in implementing new regulations to transpose the AIFMD into national law other EU member states including France and Italy are currently consulting regarding the relevant implementation rules and it is less clear whether those Member States will be ready in time.

In the UK, the Financial Conduct Authority (“FCA”) provided clarity by setting out its response to its November 2012 and March 2013 consultation papers and confirmed the FCA’s final rules for implementation of the AIFMD in its 28 June 2013 policy statement (PS13/5) (“Policy Statement”). The rules in the Policy Statement supplement the UK’s Alternative Investment Fund Managers Regulations 2013 which were approved by the Delegated Legislation Committee in the UK on 3 July 2013.

The AIFMD transitional provisions (articles 36 and 42) provide a one year transitional period for AIFMs already performing activities under the AIFMD before the 22 July 2013 although Member States can choose to comply with the AIFMD from 22 July 2013 (this is the approach adopted in Germany). The UK authorities have confirmed that the one year transitional period will be implemented in the UK and provides that those AIFMs to whom the transitional period will apply need not comply with the AIFMD requirements for marketing AIFs under the UK national private placement rules until either the earlier of 22 July 2014 or the date of authorisation as an AIFM.

The attached annex sets out the key provisions of the AIFMD and highlights specific provisions implemented by Member States in an effort to transpose the AIFMD into national laws by 22 July 2013.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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