The Alternative Investment Fund Managers Directive (Directive 2011/61/EU, AIFMD)
Published: 28 June 2013
Last updated: 22 March 2019
The AIFMD is broad in scope, covering the management, administration and marketing of alternative investment funds. Its focus is on regulating the manager of the fund rather than the fund itself. Alternative investment funds are collective investment schemes not subject to the UCITS regime, and they include hedge funds, private equity funds and real estate funds. The AIFMD establishes a harmonised framework for managing and marketing of alternative investment funds within the European Economic Area (EEA). The Directive also includes requirements for firms acting as a depositary for an alternative investment fund.
Implementation of the AIFMD in Norway
A task force appointed by the Financial Supervisory Authority of Norway (Finanstilsynet) has prepared a proposal for the implementation of the AIFMD into Norwegian law. The public consultation process closed on 20 June 2013, and the proposal is currently in the ordinary Norwegian legislative process, involving the preparation of a white paper by the Ministry of Finance and adoption by Parliament. The legal framework transposing the AIFMD into Norwegian law will probably enter into force during the course of the first half of 2014 [date changed from 1 January 2014].
Since the AIFMD has yet to be incorporated in the EEA agreement and is not fully transposed into Norwegian law, situations may arise which cannot be accommodated by way of practical arrangements. The marketing system set out in the Directive will be difficult to apply in Norway prior to adoption. The absence of a legal framework may also result in other practical difficulties. Finanstilsynet will address the situation at an operational level to minimise as far as possible the impact on the fund industry and investors resulting from non-adoption of the legislation.
Finanstilsynet will provide further information on the legislation, including a guide to preparing licence applications.
Arrangements before implementation of the AIFMD
Until adoption of the AIFMD into Norwegian law, alternative investment funds or managers managing or marketing alternative investment funds in Norway must act in accordance with applicable Norwegian law.
Marketing of foreign securities funds in Norway which are not UCITS is subject to an authorisation requirement, and is regulated by the Norwegian Act on Securities Funds (Securities Funds Act) of 25 November 2011 no. 44 Section 9-4. Alternative investment funds which are not securities funds as defined in the Securities Funds Act are not regulated as collective investment undertakings; however, Norwegian regulation on marketing, securities trading and investment services etc., must be observed. Where cross-border activity is concerned, national regulation in the home member state may also affect marketing of alternative investment funds in Norway.
AIFMD Passport Notifications can be sent to email@example.com once the legislative process is finalised.