The role of the depositary is set to become an integral part of how offshore hedge funds operate in Europe under the AIFM Directive, which will be transposed into law on 22 July 2013. Never before have Cayman-based hedge fund managers had to think about using depositaries. Under the Directive, though, the depositary’s role with any given AIF will be much higher profile. It will be held liable for the loss of any financial instruments held with third-party sub-custody accounts. What this means is that the depositary will become more important in the terms of the AIF manager’s decision making

The imminent arrival of the EU-wide AIFM Directive is set to shake up the apple cart somewhat, in terms of how hedge fund managers approach internal governance. Many London-based managers are, of course, perfectly comfortable with their compliance obligations under the FCA (formerly FSA). And whilst the Directive, on face value, should not require managers to make wholesale changes internally, it will present a more nuanced challenge. In effect, AIF managers will need to approach the way they run their AIFMD-compliant firms almost as if they were UCITS managers because this is the filter through which the FCA will likely

By Philip Graham (pictured), Harneys – The British Virgin Islands (BVI) is the world’s second largest domicile of offshore investment funds and a leading international finan

By Matt Mulry (pictured), Dillon Eustace – The Directive on Alternative Investment Fund Managers (Directive 2011/ 61/EU (“AIFMD”)) and its supplementary regulation will from 22 July 2013 introduce an authorisation regime for the marketing and management of alternative investment funds (“AIFs”) within the European Union (“EU”). Following 22 July 2013 a manager which is established outside the EU and which manages an AIF established in Cayman may only market that AIF into the EU in certain limited circumstances. An AIF under the AIFMD is defined very broadly as any collective investment undertaking established anywhere in the world that (a) is

By Fiona Le Poidevin (pictured), Guernsey Finance – In July 2013 the global economy is continuing to throw up significant events but these are nothing in comparison with what we s

By Jennifer Fox, Dillon Eustace – The EU Alternative Investment Fund Managers Directive (2011/61/EC) (“AIFMD” or “the Directive”) will be transposed into Irish legislation by implementing regulations and will come into effect on 22 July, 2013. In Ireland the implementation of AIFMD is grounded not only on the Directive and on the European Commission Delegated Regulation of 19 December, 2012 (the “Level 2 Regulations”), but also on the long established regulatory framework in place for alternative investment funds. In this regard, Ireland services over 40% of all alternative fund assets with Irish domiciled funds now representing over EUR277 billion in

By Ashley Le Feuvre, Volaw Fund Services Group – After a lengthy period of negotiation and development the European Union’s (the “EU”) Alternative Investment Fund Managers Directive (“AIFMD” or the “Directive”) finally comes into force on 22 July 2013. Following implementation and in order to continue marketing their funds to European investors, managers (“AIFMs”) of European domiciled investment funds must fully comply with the Directive. Managers with funds domiciled in countries such as Jersey, which are defined in the Directive as “third countries” will, subject to certain conditions, continue being able to market their non-EU funds to European investors under

By Malta Financial Services Authority – The law on investment services in Malta has undergone a number of significant changes in preparation for the implementation of the Alternative Investment Fund Managers Directive (hereinafter referred to as the “AIFMD”). Among these changes has been the issue of second tier legislation in the form of Regulations issued under the Investment Services Act as well as the publication both of new and of revised third level Investment Services Rules by Malta’s finance industry regulator, the Malta Financial Services Authority (hereinafter referred to as the “MFSA”). The new regime makes provision for and sets