AIFMD - Making the passport a reality

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AIFMD - Making the passport a reality

Beyond the concept of Alternative Investment Fund Managers Directive (AIFMD) there is the practicality of distribution. Deloitte Luxembourg can help you manage the cross-border distribution challenge.

Your challenges

The Alternative Investment Managers Directive (AIFMD) is potentially one of the most far-reaching legislative initiatives undertaken by the European Union in the field of investment services.

It provides the framework within the internal market for the cross-border distribution of Alternative Investment Funds, based on the notion of the passporting of the alternative investment manager itself, in offering in multiple jurisdictions the alternative products under management.

The challenges will be in meeting host and home member state requirements, articulating those subtleties back to relevant third countries and in understanding all the attendant requirements with regards to marketing and distribution.

 

Main challenges
Once the structure and governance of the Alternative offering has been decided:

  • In terms of the authorisation of the AIFM and the choice of product, relevant authorities must be notified
  • The requirements for cross-border notification, both of the AIFM and the funds to be marketed must be translated into practical steps, assimilated and executed
  • Once the investment has been made to achieve authorisation, smooth access to target markets must follow to ensure success, a process that will require monitoring
  • Building this process requires understanding, access and extensive market intelligence

 

Distribution and the private placement regime

  • The Directive contains references as to how it is envisaged that it will interact with private placement regimes
  • The apparent continued availability of private placement regimes offers in some cases a false sense of security that existing distribution channels will continue to be available
  • The process of transposition of the Directive into national law will inevitably impact on many private placement arrangements as early as 2013

Our Services

Deloitte has a long history and proven track record in providing infrastructure in support of the crossborder provision of investment products. Its fund registration services cover funds domiciled in more than 6 recognised fund domiciles offered in over 40 different jurisdictions within the European Union and beyond.

How can we help?

  • Leverage for you our existing UCITS business model with its almost daily contact across the spectrum of relevant regulators
  • Understand how each jurisdiction is approaching notification and follow the process for you
  • Maintain and update notifications as required
  • Focus on the peripheral requirements not catered for directly in the Directive – KIID, marketing literature and various information requirements
  • Article 43 caters for distribution to retail investors, which will vary from country to country; our expertise in these countries will allow you to translate this into practical distribution

Contacts

Benjamin Collette

Benjamin Collette

Partner | Strategy, Clients & Industries Leader

Benjamin is an Advisory & Consulting Partner. He is specialised in Strategy and Operations set-up and efficiency engagements. He leads the Strategy, the Corporate Finance and the Regulatory Practices ... More

Lou Kiesch

Lou Kiesch

Partner | Regulatory Consulting Leader

Lou joined Deloitte in November 2001 as Director in the Risk Advisory department, where he currently heads up the Compliance and Regulatory Practice. Since June 2005, he is partner within Deloitte’s R... More