On June 10, the European Commission (the Commission) published a report to the European Parliament and Council of the European Union (EU) assessing the application and scope of the Alternative Investment Fund Managers Directive (AIFMD) (the Report).

The recitals to the AIFMD state that it seeks to achieve a coherent supervisory approach to the risks of the financial system to provide high-level investor protection and to facilitate EU alternative investment fund (AIF) market integration. The AIFMD itself also requires that on a periodic basis, the Commission should review the application and the scope of the AIFMD. The Commission also assessed the AIFMD’s impact on investors, AIFs, Alternative Investment Fund Managers (AIFMs) in the EU and in third countries in order to establish the degree to which the objectives pursued by the AIFMD have been achieved.

In the Report, the Commission states that:

  • the AIFMD has improved the monitoring of risks to the financial system and the cross-border raising of capital for investments in alternative assets;
  • the AIFMD has helped create an internal market for AIFs and reinforces the regulatory and supervisory framework for AIFMs in the EU; and
  • AIFMs are operating with more transparency for investors and supervisors.

The Commission is currently considering whether to propose amendments to the AIFMD as a result of the findings set out in the Report.

The Report is available here.