Alternative Investment Fund Manager Directive

FinCzech has experience in registering alternative investment funds in the Czech Republic. We provide consulting and legal support at all stages of cooperation.

What is the definition of AIFMD?

The Alternative Investment Fund Manager Directive (AIFMD) is an EU legislative act related to the financial regulation of funds. Its provisions apply to those who manage collective investments, where funds from several investors are involved.

The Alternative Investment Fund Manager Directive applies to AIFs operating in the EU. It has provided investors and managers with a clear and effective mechanism for creating, managing, and promoting investment products.

The key objectives of AIFMD are to:

• Strengthen investor protection;
• Limit systemic risks;
• Ensure the proper functioning of asset managers;
• Organize and supervise their activities.

The meaning of AIFMD for EU investment funds

The Directive requires authorization from one of the central banks of the member states of the European Economic Area and the obligation to provide administrative services for the fund in the EU. It aims to harmonize the rules for regulating the management of alternative investment funds.

The role of the AIFM is crucial in ensuring compliance with the Directive, carrying out portfolio and risk management and corporate governance, as well as delegating oversight of the activities of investment managers.