The AIFM Directive is, without doubt, a success story in terms of investment funds regulation. While that was not necessarily obvious at its inception in 2011, where in particular the shift from a product focused fund regulation to the supervision of fund managers raised some concerns, this has become quite clear nowadays. Luxembourg has embraced the new framework since its transposition into national law in 2013 and, building on its experience and infrastructure with UCITS, emerged as the first port of call for international initiators of alternative investment funds in Europe: EUR 778 billion of assets under management and over 4400 AIFs (source: EFAMA,Q1/2020) speak for themselves.
From the beginning, the AIFMD was intended to be evaluated by the European Commission (EC) after some time, in order to assess its impact on the industry and identify any areas for improvement. Pursuant to Article 69 of the directive, this process was supposed to take place by July 2017, and is currently expected to formally start in September this year. The delay is in no small part due to Brexit, as the main domicile of fund managers (by a large margin) becoming a third country with respect to the EU will have a significant impact on the financial industry as a whole and the investment funds world in particular.
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