The Alternative Investment Fund Managers Directive ("AIFMD") is a major piece of EU legislation that introduced a common regulatory regime across the EU for managers of non-UCITS collective investment funds. AIFMD affects all EU Alternative Investment Fund Managers (AIFMs) and non-EU AIFMs that manage EU Alternative Investment Funds (AIFs) or market non-EU AIFs into the EU. We are able to assist managers in complying with their AIFMD obligations.
AIFMD Depositary Services
One of the key requirements of the AIFMD is that an AIFM must appoint an authorised single independent depositary for each EU AIF it manages (including private equity type funds). The depositary must have its registered office or branch in the EU AIF’s home member state.
Our Luxembourg office is authorised by the Luxembourg Ministry of Finance to act as a depositary to private equity, real estate, infrastructure and debt funds in accordance with AIFMD.
As a depositary, Trident Trust safeguards non-financial assets for the benefit of the investors in Alternative Investment Funds by carrying out three principle functions:
Cash flow monitoring
- identification of cash movements at the level of fund
- verifying the significant cash flows
- keeping records of movement
Safekeeping of assets
- verifying and archiving information on assets owned by AIF
- checking the chain of ownership
- identifying the target assets and its owners
- verifying valuations of assets and limited partnership interests
- monitoring subscriptions, withdrawals and capital calls
- monitoring income distributions
- settlement of transactions
- executing due diligence processes
For more information contact our Director of Luxembourg Depositary Services, Chantal Behr.
We are able to provide the full range of reporting services, including Investor reports, AIFMD (Annex IV) reports, FATCA, CRS and regulatory reporting, using the state of the art reporting software applications.
Many fund managers, particularly start-ups or established funds outside the EU looking to market to EU investors, opt to comply with AIFMD and benefit from the EU marketing passport through the use of a third party AIFM rather than establishing and operating their own authorised AIFM. Through partnerships with best-in-class third party AIFMs we are able to provide a full range of authorised AIFM services, including risk management services.
In addition, for clients looking to domicile an AIFM outside the EU while delegating the portfolio management function back to a registered manager, we are able to offer access to a Guernsey-based risk management function to comply with the necessary provisions of AIFMD.
Luxembourg’s RAIF, introduced in July 2016, is an investment vehicle that offers legal structuring and investment flexibility and quick time to market, as well as no requirement for CSSF approval or supervision, but with the AIFMD regime’s investor protections. Combining many of the characteristics of the SIF and SICAR regimes, the RAIF adds to the range of attractive fund structuring options that Luxembourg is able to offer to private equity, hedge fund and real estate fund managers globally.
A RAIF can only be managed by an authorized external AIFM, domiciled in Luxembourg or another EU member state (or outside the EU subject to third-country management passport rules), and is therefore indirectly supervised by the competent supervisory authority of its AIFM and able to make use of the AIFM passport for marketing to EU professional investors on a cross-border basis.
In addition, the RAIF may accommodate any type of investment strategy and asset class and allows the creation of fully segregated compartments through the use of an umbrella structure.