Alternative Investment Fund Managers Directive (AIFMD)

Topic Guides

The AIFMD is the main regulatory framework for non-retail fund managers operating in the European Union. It imposes licensing requirements on fund managers and a broad range of regulatory requirements, including capital requirements, conduct of business rules and restrictions on the ability to market non-retail funds to EU investors.

This Topic Guide helps you navigate both the legislation itself and the secondary rules through which it has been implemented and allows you easy access to briefing notes and other materials prepared by Clifford Chance's team of funds and financial regulation experts.

Inside this Topic Guide

Topic overview and current status

The EU Alternative Investment Fund Managers Directive (AIFMD) regulates the management, administration and marketing of alternative investment funds (AIFs) in the European Union. AIFMD governs authorisation and operating conditions for AIFMs, remuneration, conduct of business and valuation requirements, transparency and marketing. It also includes requirements for firms acting as a depositary of an AIF. An AIF is a collective investment undertaking that is not subject to the UCITS regime. This includes hedge funds, private equity funds, retail investment funds, investment companies and real estate funds.

In 2024, AIFMD2 entered into force, and from Q2 2026 will introduce amendments to both the AIFMD and the UCITS Directive rules relating, among other things, to delegation, authorisation requirements, reporting obligations and the regulation of loan originating AIFs.

In 2026, the AIFMD is likely to be impacted by other EU initiatives, such as the EU retail investment package and the EU Market Integration Package, which will supplement or make changes to the Directive.

Status	A Directive to amend the AIFMD was published 26 March 2024 which is the first stage of reviewing the framework. Member States will have to implement these new rules into their national law by 16 April 2026. AIFMD II does not apply to UK AIFMs but will still be relevant for UK and non-EU AIFMs. AIFMD Directive published in OJ 1 July 2011 and entered into force on 21 July 2011.
Next	March/April 2026: Member States to implement. ESMA to develop guidelines on AIF names, Supervisory intervention on liquidity risk management and information exchange procedures. March/April 2027: ESMA to develop Level 2 measures on detailed reporting reqiorements. March/April 2029: End of grandfathering rules on loan origination.
Implementation	Member states will have 24 months to implement AIFMD II. The implementation date is by 16 April 2026. Certain reporting changes must be applied 12 months later i.e. from 16 April 2027. All EU member states have implemented the AIFMD which was incorporated into the European Economic Area Agreement (EEA Agreement) on 1 October 2016.

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