Deborah Prutzman This article was authored by Deborah Prutzman, Founder and CEO of New York based-RFG, which provides, among other things, regulatory and risk guidance.
AIFMD—As a U.S. adviser, are you within its scope and can you avoid its reach?
The AIFMD will apply if you advise an alternative investment fund that is chartered in the EU or markets to EU investors. The extent and timing of the AIFMD’s impact will depend upon where you, the funds you advise, and the funds' investors are located. If you have multiple alternative investment funds chartered in different jurisdictions, you may face a more complex set of decisions about your organizational structure. But for now, let’s keep it simple. At the most basic, if you fall within the scope of the AIFMD, are there ways to avoid its reach? And should you even try?
If you fall within the AIFMD’s scope only because you manage an EU fund (which will be a rare scenario), you can avoid full AIFMD compliance until 2018. During this transitional period, you will be subject to local laws and regulations of the country where your fund is chartered and any country where you market your funds. You will also need to meet limited AIFMD responsibilities regarding disclosures to regulators (including a filing similar to Form PF), asset stripping (for controlled companies if applicable), and portfolio company disclosures (if applicable). The required portfolio company disclosu......................
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