Some see a rosy future for the regulated alternative investment fund (AIF). As Europe looks to recover from the economic consequences of the pandemic, one of this report’s contributors says a public-private partnership is required, which would need the kinds of investment instruments that AIFs are set up to invest in (see our Luxembourg jurisdiction roundtable feature).
The two drivers of the alternative asset classes that AIFs invest in have been rooted in both the investment and the regulatory environments. It was the Alternative Investment Fund Managers Directive (AIFMD) that saw the creation of the AIF as a regulated entity, opening up alternative investments to a whole new range of investors.
Luxembourg has developed as a major centre for the domiciliation and administration of AIFs, and so the Grand Duchy was relieved recently when Brussels signalled there’d be limited changes to the AIFMD regime following an important review.
It may be some time before any implications of this review become clear. In the meantime, as the funds industry in Luxembourg examines anti-money laundering regulations, some are concerned that lawmakers are crafting a one-size-fits-all set of rules that fails to recognise the nuances of how asset management is structured.
Nick Fitzpatrick, Group Editor, Funds Europe
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