AIFMD starts to take effect from 22 July 2013, subject to certain transitional arrangements.  In broad terms, it will affect US investment advisers engaged in the following activities:

• Marketing funds in the EEA.  AIFMD will change the way that fundraising is regulated throughout the EEA.  This will be relevant to virtually all sponsors of AIFs (whether they are open or closed ended, listed or unlisted) which are actively marketed to EEA investors.  This is discussed further under “Marketing Funds in the EEA” below.
• Managing EEA funds. US investment advisers managing EEA domiciled AIFs will need to reassess whether they can continue to do so from this July, and on what terms.  This is discussed further under “Managing an EEA domiciled AIF” below.
• Sub-advising a fund managed by an EEA AIFM. US investment advisers which sub-advise or provide investment services to an EEA AIFM may be drawn into AIFMD compliance requirements by new rules on delegation applying to the AIFM.  This is discussed further under “Sub-Adviser to an EEA AIFM” below.
• Delegating to an EEA sub-adviser.  Any US fund manager that delegates portfolio or risk management in relation to an AIF to a European entity will need to consider carefully whether it or the European entity would be categorised as the fund’s sole AIFM.  If the European entity is categorised as the AIFM it would be obliged to apply virtually all of the AIFMD’s provisions in relation to the AIF.