After much deliberation, the text for the Alternative Investment Fund Managers Directive (AIFMD II) is nearing its final stages, as reported by Goodwin on JD Supra. This development comes following our prior notifications about the AIFMD II gaining traction, the October 2023 horizon scan for Private Investment Funds, and the finalization of the European Parliament’s proposed text.
The draft text was first put forth by the European Parliament’s Committee on Economic and Monetary Affairs (ECON).
The overarching purpose of the AIFMD II is to regulate alternative investment fund managers within the EU and those distributing to EU-based investors in order to ensure financial system stability and market integrity. The directive covers a broad scope, influencing key aspects of fund operations such as capital requirements, remuneration policies, depositaries, valuation procedures, and leverage limits, among others.
Details of the specific changes introduced in the nearly agreed upon text are yet to be released, but legal practitioners, fund managers and investors alike await the potential implications on the world of alternative funds.
With this, the regulatory terrain across Europe continues to exhibit dynamism, warranting the need for keen attention from legal professionals at global corporations and widespread law firms.