AIFMD

Alternative investment fund managers (AIFMs) control a significant proportion of all investments in Europe and have been linked by the EU Commission to the causes of the financial crisis. They are said to have a significant influence on the markets and companies in which they invest and could spread and amplify risks via the financial system.

In order to achieve comprehensive common supervisory rules, a framework must therefore be created to counter these risks, taking into account the different AIFM investment strategies and techniques. Products should not be regulated.

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

The AIFM cannot escape this state intervention. A contribution to the financial crisis is irrelevant. Neither does the need to protect their investors. Competition alone leaves de facto no alternative to adapting governance, organisational structure, production processes and transparency.

The path to success is not predetermined. Government intervention in an industry that has so far been largely spared by supervisory authorities has many strategic implications. There is not much time left to translate this into operational action. It is important to identify the outlines of the business model of the future as soon as possible and to stabilise it by consolidating knowledge of the regulatory framework.

The strategic dimension of a probable business model must be closely linked to the operational dimension of product customisation, the use of transitional arrangements, changes to resources and processes and the redefinition of permitted service relationships.

The EU Commission's approach in developing the implementing directives is to base them on existing regulations for regulated investment funds. This will lend a German flavour to the package of directives in the national transformation, with which we are moving into familiar territory. Much of what appears abstract at first glance quickly becomes clear in the context of already regulated providers and products.

Use the experience of our KPMG experts on structures, products and organisations with comparable legal frameworks to successfully implement the requirements of the AIFM Directive.

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