AIFM Directive and pension schemes


The Alternative Investment Fund Managers Directive came into force in the UK on 22 July 2013. The Directive focuses on the regulation of Alternative Investment Fund Managers. It applies to managers of “collective investment undertakings (other than those which are subject to UCITS) including hedge funds, private equity funds and real estate funds.

Both open-ended and closed-ended vehicles, as well as listed and unlisted vehicles can be Alternative Investment Funds for the purposes of the Directive. There are grandfathering provisions in respect of closed-ended funds, although in practice these may be of limited assistance.

Among other things, the Directive sets out conditions and requirements for:

  • authorisation of the manager;
  • marketing of the fund;
  • conduct of business;
  • fund depositary; and
  • transparency / disclosure.

Following the publication of the implementing rules and the consultation document, AIFMs will now be addressing both whether and how to organise any AIFs which they manage. It is implicit within the consultation document that the cost of any re-organisation by AIFMs will be pushed down to investors