Recent regulatory reforms have changed the way in which private funds are being offered to European investors. The Alternative Investment Fund Managers Directive (AIFMD) became law across the EU during 2013 and 2014, and the new Swiss regime is due to come fully into force on 1 March 2015.

Regulation of marketing in the EU

The AIFMD regulates marketing by alternative investment fund managers (AIFMs), or others on their behalf, of investments in alternative investment funds (AIFs), regardless of their investment strategy, structure or underlying investments. The marketing restrictions apply whenever a fund is being offered at the initiative of the AIFM, or on its behalf, to an investor domiciled or with a registered office in an EU country. Offers of managed accounts, single investor funds (subject to certain conditions) and UCITS funds remain outside the scope of the AIFMD and its marketing restrictions. However, some EU jurisdictions (such as Ireland) do not accept that single investor funds are out of scope, and the domestic Irish fund rules regulate them as if they are AIFs with AIFMs. In contrast, Malta and the United Kingdom treat them as out of scope.

Jan-Mar 2015 Issue

Schulte Roth & Zabel International