On 24 August 2012, the Luxembourg Finance Ministry submitted the draft Bill transposing the European Alternative Investment Fund Managers Directive (the “AIFMD” or the “Directive”) to the Luxembourg Parliament. ALFI strongly believes that the AIFMD presents a welcome opportunity for Europe to create a brand in the alternative investment market, similar to the global brand it has created with UCITS. Through AIFMD, the European Union is creating the first regulated environment for alternative investment funds worldwide.
ALFI believes that the Luxembourg Government’s ambition to be a first-mover in transposing the directive puts the Luxembourg financial centre, which is already well-established in the ‘alternative’ sphere, in a strong competitive position to develop the hedge, real estate and private equity activities even further.
In Luxembourg, alternative funds have been subject to specific regulation aiming at protecting investors and offering flexible structuring opportunities to asset managers for many years. Therefore, the Luxembourg regulator is already familiar with the specific requirements of this industry sector.