Beverly Chandler, Opalesque London: Su Cheen Chuah of Hong Kong based law firm Deacons has written a timely note on the potential impact of Europe’s AIFMD on Hong Kong based managers.
Chuah writes: "The Alternative Investment Fund Managers Directive (AIFMD) is a European Union (EU) Directive which introduces a new regime to regulate alternative investment fund managers (AIFMs) with the aim of increasing investor protection while reducing systemic risk. It must be implemented into the national laws of EU Member States by 22 July 2013."
Fundamentally, changes introduced by the AIFMD include the requirement for the authorisation of certain AIFMs, and the imposition of certain organisational requirements and compliance obligations on AIFMs together with continuing reporting and disclosure obligations.
Beyond that, the AIFMD introduces an EU passport system for the marketing of alternative investment funds (AIFs) and it is here that an AIFM can market its funds to professional investors across the EU Member States on the back of authorisation in a single EU Member State. Chuah writes: "Although initially only applicable to EU AIFMs managing EU AIFs, from July 2015 the passport system may be extended to permit non-EU AIFMs authorised in accordance with the requirements of the AIFMD to market all AIFs to "professional investors" across the EU."
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