Alternative Investment Fund Managers Directive (AIFMD) definition

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EU AIFMD—timeline

EU AIFMD—timeline This timeline shows key developments relating to the Alternative Investment Fund Managers Directive (EU) 2011/61/EU (EU AIFMD) from January 2024 onwards. For earlier developments, see Alternative Investment Fund Managers Directive (AIFMD)—timeline [Archived]. For further guidance on EU AIFMD, see Practice Note: EU AIFMD—essentials. For further guidance on the UK Alternative Investment Fund Managers (AIFM) regime, see Practice Note: UK regulation of alternative investment fund managers—essentials. 2025 Date Source Document Description 24 April 2025 ESMA ESMA assesses the risks posed by the use of leverage in the fund sectorTRV Article: Risks in UCITS using the absolute Value-at-Risk approachTRV Article: Annual risk assessment of leveraged AIFs in the EU – 2024 The European Securities and Markets Authority (ESMA) has published its annual risk assessment of leveraged alternative investment funds (AIFs) and its first analysis on risks in the (Undertakings for the Collective Investment in Transferable Securities) UCITS using the absolute Value-at-Risk (VaR) approach. ESMA’s analysis identifies that while most EU funds utilise limited leverage, a subset of AIFs—particularly hedge...

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Non-UCITS retail schemes (NURS)

Non-UCITS retail schemes (NURS) This Practice Note explores non-UCITS retail schemes (NURS) and comments on investment powers, key investor information documents (KIIDs), promotion and NURS that are funds of alternative investment funds (FAIFs) or property authorised investment funds (PAIFs). What is a NURS? Alongside UK-authorised undertakings for collective investment in transferable securities (UCITS), non-UCITS retail schemes (NURS) are a second form of UK-regulated collective investment scheme (CIS). A NURS can take the form of an authorised unit trust (AUT), an open-ended investment company (OEIC), or an authorised contractual scheme (ACS). Other forms of non-UCITS scheme which are authorised by the Financial Conduct Authority (FCA) are the Qualified Investor Scheme (QIS), which is designed for professional clients rather than retail clients, and the Long Term Asset Fund (LTAF) which is designed to invest in illiquid and long-term assets. For more information on QIS, see Practice Note: Qualified investor schemes (QIS) and for more information on LTAFs see Practice Note: The UK Long-Term Asset Fund (LTAF). In general terms, an...

Family offices—governance and regulation

Family offices—governance and regulation The governance of family offices falls into two broad categories: • external compliance—where the activities of the family office fall within the ambit of statutory regimes, in particular financial services regulation • internal governance—which focuses on the arrangements of the wealth-owning family for the stewardship and distribution of that wealth For more general background on the types of family offices and the services they offer, see Practice Note: Family offices. For an overview of how wealthy families may structure their investments through family investment companies, see Practice Note: Family investment companies. Both of the above aspects need to be considered: • most obviously when establishing or formally restructuring a family office, and • also periodically as the circumstances of the business or wealth-owning family evolve. It would be fairly common for a business family whose principal asset remains their family business also to have a number of property and other interests administered through the parent business providing quasi-family office support. The balance of investment...

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Can real estate joint venture arrangements be subject to onerous and costly regulation under the Alternative Investment Fund Managers Directive?

Can real estate joint venture arrangements be subject to onerous and costly regulation under the Alternative Investment Fund Managers Directive? Certain real estate joint venture arrangements (JVs) may potentially be subject to onerous and costly regulation under the Alternative Investment Fund Managers Directive 2011/61/EU (AIFMD), as implemented. The AIFMD had to be implemented by EU Member States by 22 July 2013. A transitional period under Article 61(1) of the AIFMD gave AIFMs a year to submit an application for authorisation—this ended on 22 July 2014. The AIFMD framework gives rise to a major change for the real estate funds industry, which previously had been relatively lightly regulated by the collective investment schemes (CIS) regime under section 235 of The Financial Services and Markets Act 2000 (FSMA 2000), and related regulations. Crucially, a JV is subject to the AIFMD, as implemented, if it falls within the definition of alternative investment fund (AIF) in Article 4.1(a) of the AIFMD, even if referred to as a ‘JV’....

Where can I find information relating to FCA perimeter issues?

Where can I find information relating to FCA perimeter issues? The FCA's Perimeter Guidance manual (PERG) provides guidance about the circumstances in which authorisation is required, or exempt person status is available, including guidance on the activities which are regulated under the Financial Services and Markets Act 2000 (the Act) and the exclusions which are available. Application of the Perimeter Guidance manual (PERG) PERG applies to: • a person who is considering carrying on activities in the United Kingdom which may fall within the scope of the Act and is seeking guidance on whether he/she needs to be an authorised person • a person who seeks to become an authorised person under the Act and who is, or is considering, applying for Part 4A permission to carry on regulated activities in the United Kingdom • a person who is seeking guidance on whether any communication he/she may be seeking to make or cause to be made will be a financial promotion and be subject to the restriction...

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Financial Services—other developments (6/5/2025)

A round-up of other developments, which have not been covered in full by the LexisNexis Financial Services practical guidance team but may nevertheless be of interest.

ESMA publishes draft RTS and final report on guidelines on liquidity management tools for funds

The European Securities and Markets Authority (ESMA) has published draft regulatory technical standards (RTS) and a final report on guidelines concerning liquidity management tools (LMTs) for funds. This is part of the implementation of the revised Alternative Investment Fund Managers Directive (AIFMD) and the Undertakings for the Collective Investment in Transferable Securities (UCITS) Directive, which requires ESMA to develop draft RTS to determine the characteristics of LMTs for funds. ESMA is also required to develop guidelines on the selection and calibration of LMTs by fund managers for liquidity management and for mitigating financial stability risks. The guidelines recognise that the primary responsibility for liquidity risk management remains with the managers and clarify the circumstances in which side pockets may be activated. The draft RTS has been submitted to the European Commission for adoption and the guidelines will be translated and applied following the adoption of the RTS.