Alternative Investments

The alternative investments business in Luxembourg keeps on growing. To what extent does the work of your committee contribute to this positive development?

The AIFMD and its transposition into Luxembourg law have been major‎ events for Luxembourg as a domicile of alternative investment funds. The introduction of the EU marketing passport has created great opportunities for Luxembourg in the alternative space.
The comittee endeavours to maintain a regular dialogue with the national regulator and government authorities‎ in order to optimise the Luxembourg regulatory environment, develop practical guidance and to identify new opportunities for Luxembourg as an alternative investment fund center.

The committee is involved in the organisation of conferences, be it in Luxembourg or abroad in order to promote alternative investment funds. Furthermore, the Committee is coordinating the efforts of Alfi in the hedge funds, private equity, real estate, infrastructure and loan funds environment.‎
The Committee is involved in the preparation of marketing material and guidelines ‎setting out best practices.

How can you achieve that the Luxembourg fund industry’s voice is heard also at EU level?

The Committee is participating in the relevant EFAMA working groups and is seeking to develop the relationship with industry associations abroad which are representing the interest of alternative investment industry.
Furthermore, the Committee is involved in the preparation of responses to industry consultations published by the European Commission or the European Securities and Markets Authority.

The review of the AIFMD is due to start mid of this year. Is the alternative investments committee ready to participate in upcoming discussions?

A dedicated working group has been created in order to prepare the responses to the consulations from the European authorities. The Commission will first conduct an internal study on the operation of the AIFMD before entering into discussions with the industry.

The Committee is favouring a process resulting in a limited number of changes e.g. improving the functioning of the passport and harmonising marketing and pre-marketing concepts. The general framework set out by the AIFMD should remain unchanged. In particular the concept of manager supervision as opposed to fund supervision should remain unchanged.

Claude Niedner, Arendt & Medernach

Chair of the ALFI Alternative Investments Technical Committee