A critical analysis of the Alternative Investment Fund Managers Directive to date : are investors adequately protected?

Abstract

The purpose of this thesis is two-fold. Firstly it analyses the salient provisions of the AIFM Directive in relation to how it will impact the service providers in the fund industry and looks into how these provisions will be aligned with Maltese law. The second aspect of this thesis delves into how investors are protected through the measures which have been introduced by the Directive. The reader must bear in mind that the AIFM Directive is still subject to amendments by the European Commission since the intricate details of the level 2 implementing measures have not yet been published. The true implications of this Directive will be manifested in mid 2013. The analysis of this thesis has been done taking into consideration ESMAs advice and excludes the level 2 measures. Chapter one is an introductory analysis into the role which Alternative Investment Funds have in the financial industry and the impact which the financial crisis has left on them. The role of the depositary within the AIFM Directive is dealt with in Chapter two. Such chapter also looks into the notion of liability ensuing upon this service provider. Chapter three looks into the area of systemic risk and how the activities of both the AIF and the AIFM may affect this dynamic. The marketing and passporting concept in the AIFM Directive is also looked into. Chapter four delves into how the AIFM Directive regulates the role of the fund manager and the liability attached to this service provider. The final chapter shall look into how Malta is preparing itself to implement the practical and legal aspects of the Directive and what necessary amendments are required in the Maltese legal sphere to align itself with the Directive.