It could be some time yet before the AIFMD brings standard regulatory requirements across the EU, says Glynn Barwick (pictured), regulatory lawyer at Goodwin Procter LLP…
Member states are required to implement the Alternative Investment Fund Managers Directive into their law by 22 July. Although it is intended to create a standard set of regulatory requirements in all member states for European and, separately, non-European managers, in fact some states (such as Norway, Finland and various Mediterranean countries) will be late in implementing the directive.
Moreover, those that will implement it on time are being inconsistent or unclear as to whether the crucial one-year transitional provision will be available to non-European managers (so as to exempt them from the directive until 2014), and as to whether and how they should register the funds that they wish to market into the EU. Important countries such as France and Germany additionally require the appointment of a depositary, which does not usually happen in a private equity or real estate fund context.
Frankly, managers are going to be operating in uncertain waters for some time to come and will need to check the private placement rules in each country before approaching investors there.