Introduction to the Alternative Investment Fund Managers Directive
The Alternative Investment Fund Managers Directive (AIFMD) is an important and challenging piece of legislation that is expected to have significant impact on how alternative investment fund managers do business. The Directive, which focuses primarily on regulated alternative investment fund managers rather than collective investment schemes per se, is broad in scope and prescribes various requirements, including requirements with respect to authorisation of the fund manager, regulatory capital, conduct of business, safekeeping of investments, delegation, marketing, use of leverage and remuneration. Although some of the requirements prescribed by the Directive are already considered to be 'best practice' and find broad acceptance within the industry, it is likely that most managers falling within the scope of the directive will need to alter some or all of their operating procedures, internal structures and fund documents in order to ensure compliance.
AIFMD Compliance for Maltese AIFMD
The Malta Financial Services Authority has notified the local funds industry that existing fund managers and self-managed funds have a one year transition period, starting 22nd July 2013, so as to register as a 'deminimis' AIFM or to apply for an AIFM licence (which necessitates satisfaction of the requirements established in the AIFMD). The MFSA has recommended that the relevant self-assessment questionnaires are duly completed and submitted by the 31st of March 2014.
How we can help
Chetcuti Cauchi advises clients across the spectrum of regulated business in Malta, and has assisted diverse business with their financial services set-up and post-licensing compliance matters. We assist by drafting all required regulatory documentation, managing relations with regulators, providing supporting tax and corporate structuring advice and giving our clients the benefit of our deep native knowledge of the Maltese jurisdiction. Focusing on AIFMD compliance, our firm assists by:
- Assisting with the performance of gap analysis, identifying all key areas requiring change in light of the Directive
- Advising on any internal process and organization restructuring required
- Drafting of new or amended fund documentation
- Negotiation or re-negotiation of agreements with third party collaborators and service providers
- Management of relations with regulators
