The Alternative Investment Fund Managers Directive will establish an EU-wide regulatory and supervisory framework for alternative investment funds. Although primarily aimed at hedge funds, the broad scope and “one size fits all” approach of the Directive mean that it will also impose onerous compliance obligations on many other businesses, including real estate investment businesses. Lengthy negotiation and much lobbying on behalf of the property industry have secured valuable exemptions which should take many traditional real estate investment structures outside the scope of the Directive, but much of the detail of the new regime, and the extent to which it will affect real estate businesses, will not become clear until secondary legislation and guidance are settled.
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