AIFMD (Alternative Investment Fund Managers Directive)

The Alternative Investment Fund Managers Directive (AIFMD) is a European regulation that oversees managers of hedge funds, private equity funds, and other alternative investment funds. It requires these managers to adhere to certain rules related to transparency, risk management, and investor protection to ensure the stability and integrity of the financial system. The AIFMD also introduces licensing requirements and reporting obligations, aiming to better supervise the activities of fund managers operating across EU borders, ultimately fostering a more secure and well-regulated investment environment for institutional and professional investors.