Description

The Members of Boards of Directors of Alternative Investment Funds (AIFs) and Alternative Investment Fund Managers (AIFMs) are finding themselves under increasing scrutiny from investors in AIFs, initiators of AIFs and sponsors of AIFMs, regulators and other stakeholders.

The implementation of the AIFM Directive (AIFMD) substantially raised the bar for the AIFMs and AIFs they manage.

In order to comply with this formal and prescriptive regime, the Boards of AIFMs and AIFs need to master adequately their organisational models and structures, corporate governance practices, remuneration models, fund documentation, due diligence and oversight practices, as well as many other aspects of their operations.

The requirements of the AIFMD have to be reconciled with the realities of the organisation of the group, of each AIFM and of each AIF often spanning multiple EU and non-EU jurisdictions, and the impact of other EU and non-EU regulations.

In this context, Directors now have to be part lawyers, auditors, regulatory experts, portfolio and risk managers, operational managers and systems technicians, among many other things.