The Alternative Investment Fund Managers Directive — Luxembourg implementation

The Alternative Investment Fund Managers Directive (AIFMD) is the outcome of a G20 consensus for closer regulatory oversight of systemic risks emanating from certain players and activities in the alternative investment funds sector. In particular, it aims at setting up robust risk and liquitity management systems and at enhancing transparency for investors.

The initial proposal of the AIFMD gave rise to vehement criticism from many industry participants and led to lengthy discussions between the EU Commission, the EU Council of Ministers and the EU Parliament before these bodies were able to reach a compromise. The AIFMD was finally approved by the EU Parliament on 11 November 2010 after nearly one-and-a-half years of intense negotiations.

Luxembourg has now fully implemented the AIFMD. The AIFMD Law is an important step for the ongoing development of the alternative investment fund industry and moreover will reinforce Luxembourg’s position as a global investment fund hub…

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