La mise en oeuvre de la directive AIFM sur la place luxembourgeoise

Abstract

The Alternative Investment Fund Managers Directive (AIFMD) is a EU directive that aims at placing Private Equity, Real Estate, Hedge Funds and any other alternative investment firms into a regulated framework, in order to monitor and regulate their activity. This directive came in response to the financial crisis in order to establish a regulatory framework for the alternative investment sector, which was not regulated until then. Like any regulatory decision, it is controversial and this one is no exception. Is it a useful piece of legislation for the sector, which allows the latter to grow within a more secure framework? Or is it a law to have a better control over the players of the industry? Throughout this research, several experts will share their expertises and, ultimately, the research will draw a conclusion on the general opinion of the sector. The purpose of this research is to establish whether the AIFMD reaches the objectives of the EU for the investment funds industry. The new regulatory framework requirements are manifold and it is a matter of concerns for the investors who want to know the changes and the consequences for their investments. The results show that the regulatory framework, thanks to the AIFMD, does not necessarily improve the alternative investment. It complicated the process for the managers who will have more due diligence and will need to provide more documents to the authorities and investors. In return for this heavier regulation, investors have greater protection. It is not the appropriate response to the financial crisis because the alternative investment fund sector did not cause the crisis or barely. Therefore, the process has been complicated and not necessarily for good reasons. This led to a loss of competitiveness compared with other non-European countries. However, there is indeed a greater protection for the investors with all these new requirements for the managers and the depositary. Consequently the objectives are partially met.