AIFMD

Alternative Investment Fund Managers (AIFMs) control significant portions of all investments in Europe and are linked by the EU Commission to the causes of the financial crisis. They are believed to have a significant impact on the markets and business entities in which they invest and to spread and amplify risks through the financial system.

In order to achieve comprehensive common prudential rules, it is therefore necessary to establish a framework to address these risks, taking into account the different AIFM investment strategies and techniques. Products should not be regulated.

The political intent was followed by action in the form of a directive under European law, which only occasionally shows a causal connection with the financial crisis. Implementing directives are intended to bring clarity to the AIFM Directive, but will also further increase regulation. The final act is transformation into national law, incorporation into the Investment Act and tax equality with comparable products.

The AIFMs cannot evade such government access. Contributing to the financial crisis is not the point. Nor the need for protection of their investors. Competition alone actually does not allow an alternative to adapting governance, organizational structure, production processes and transparency.

The path to success is not pre-determined. State intervention in an industry that has so far been largely spared from regulatory agencies has many strategic implications. There is not much time left to translate into operational action. The outlined business model of the future must be identified as soon as possible and stabilised with the solidification of knowledge about the regulatory framework.

From the strategic dimension of a probable business model, there is a close link to the operational dimension of product adaptation, the use of transitional arrangements, the change of resources and processes, and the redefinition of permitted service relationships.

The EU Commission’s approach in the development of the implementing guidelines is to orientate itself towards the existing rules and regulations of regulated investment funds. This will give the package of guidelines in the national transformation here a German character, with which we are moving on familiar territory. Much of what still seems abstract at first glance becomes clear very quickly in the context of providers and products that have already been regulated.

Benefit from the experience of our KPMG experts on structures, products and organisations with comparable legal frameworks for a successful implementation of the AIFM Directive requirements.

Our 4-phase model with risk-oriented target-performance comparison (AIFM Directive: It’s time to act) shows you your existing need for action and forms the basis for successful implementation.