The Changing Face of EU Investment Fund Regulation

The Alternative Investment Fund Managers Directive (AIFMD) was introduced in response to well publicised failures in governance that impacted European Union (EU) funds during the global financial crisis of 2008-09.

The aim of the AIFMD was to ensure minimum regulatory standards for the operation of management companies responsible for funds available for investment in the EU and not captured by the pre-existing Undertakings for Collective Investment in Transferable Securities (UCITS) Directive.

Over time the AIFMD has evolved to include fund specific regulation with the introduction of new rules governing loan originating alternative investment funds (AIFs).

In this article we explore these new fund rules, as well as some of the other changes to both the AIFMD and UCITS Directive, introduced by the amending directive that came into force on 15 April 2024.