The Directive on Alternative Investment Fund Managers: Comparative Analysis of Certain Aspects of Regulatory Regimes in Europe, Canada and the United States of America.

The Directive on Alternative Investment Fund Managers: Comparative Analysis of Certain Aspects of Regulatory Regimes in Europe, Canada and the United States of America. by Miguel Hernandez A thesis submitted in conformity with the requirements for the degree of Master of Laws Graduate Department of the Faculty of Law University of Toronto © Copyright by Miguel Hernandez 2012 Miguel Hernandez Master of Laws (LL.M.) - 2012 Faculty of Law, University of Toronto THE DIRECTIVE ON ALTERNATIVE INVESTMENT FUND MANAGERS: COMPARATIVE ANALYSISOF CERTAIN ASPECTSOF REGULATORY REGIMESIN EUROPE,CANADA AND THE UNITED STATESOF AMERICA ABSTRACT The Alternative Investment Fund Managers Directive ("AIFMD"), adopted by the European Union on 11 November 2010, has introduced a harmonized set of rules for alternative investment funds ³$,)V´in Europe. This thesis discusses potential financial risks for the AIFs industry arising from the European regulatory reform, which started before the current financial crisis, and compares relevant European, Canadian and US rules governing AIFs. This comparative analysis is based on four main criteria: i) registration and authorization requirements, ii) general financial transparency requirements, iii) capital requirements, and iv) remuneration restrictions. The analysis of AIFs regulatory reform in Europe leads to three main conclusions. First, the AIFMD requirements are much stricter than analogue regimes in Canada and the United States. Second, as a consequence of this regulation, European AIFs may be in disadvantage. ii Third, the complexity of the present European institutional framework is not able to fully implement the European regulatory reform. iii TABLE OF CONTENTS 1. Introduction 2.Costs and Benefits of the Alternative Investment Fund Industry. 3.Overview of the pre-crisis European regulatory regime of the Alternative Investment Fund Industry. 3.1National Regulations 3.2Self-regulation of the Alternative Investment Fund Industry 4.The regulatory reform of the Alternative Investment Fund Industry as a consequence of the financial crisis: the International initiatives 5.The Alternative Investment Fund Manager Directive (³AIFMD´) 5.1The EU Regulatory Process 5.2The AIFM Directive: Overview of key requirements for Alternative Investment Fund Managers. 6.The Alternative Investment Fund Manager Directive from comparative perspective. 6.1The Canadian Regulatory Regime 6.1.1Introduction 6.1.2Authorization Requirements 6.1.3Capital Requirements 6.1.4Financial Disclosure Requirements 6.1.5Management Remuneration restrictions 6.2The United States Regulation 6.2.1Introduction 6.2.2Authorization Requirements 6.2.3Capital Requirements 6.2.4Financial Disclosure Requirements 6.2.5Management Remuneration restrictions iv 7. Preliminary Assessment: Is the AIFMD in the right direction or can it fall in certain regulatory excesses? 8.Conclusions v ... - tailieumienphi.vn