Alternative Investment Fund Managers Directive (AIFMD)

The Alternative Investment Fund Managers Directive (AIFMD) is a European regulation aimed at overseeing managers of alternative investment funds, such as hedge funds and private equity. It establishes rules for transparency, risk management, and investor protection, ensuring that fund managers provide detailed information about their funds and operations. The directive requires managers to be authorized and registered, promoting a safer investment environment. Essentially, AIFMD seeks to enhance accountability and stability in the financial markets by regulating how these often complex investment vehicles operate.