Is the European Union about to limit hedge fund managers'
|| Stuart Kaswell, general counsel to the Managed
Maybe yes, maybe no. But hedge fund managers are clearly
worried. The EU has issued a mandate, known as Alternative
Investment Fund Managers Directive, providing a set of
guidelines relating to risk and liquidity management,
transparency, reporting and more. The guidelines will affect
alternative investment funds and how they market their products
to EU investors. But the AIFMD has left many questions
unanswered - including the issue of compensation limits. The
directive is due to take effect starting this July, although
funds domiciled outside the EU will have until 2015 or possibly
later to comply.
As of now it isn't even fully certain which hedge funds will
be subject to the directive. For instance, the EU authorities
have not specified whether a U.S. office of a London-based