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bySamanthaLakeCoghlanandGlynnBarwickTheAlternativeInvestmentFundManagersDirec-tiveAIFMDisEuropeanlegislationintendedtocreateauniedregulatoryframeworkthroughoutEuropeforthemarketingandmanagingoffundsthatwillinduecoursereplacethecurrentpatchworkofprivateplacementregimes.Itwillaectthebusinessofallnon-EuropeanfundsandtheirmanagersthatwishtoattractinvestorsfromtheEuropeanEconomicAreaEEAi.e.mostofEuropeexceptSwitzerlandandtheChannelIslands.Sowhatdonon-EuropeanmanagersneedtoknowaboutAIFMDWhoistheManagerTheAIFMDappliestothemanagerofanyfundthatisbeingmarketedtoinvestorsintheEEA.EachfundmusthaveoneandonlyonemanagerwhoisresponsibleforthefundscompliancewiththeAIFMDandwhocarriesoutatleastoneoftheinvestmentmanagementandriskmanagementfunctions.Themanagermaydelegatetheday-to-dayfunctionsforwhichithasresponsibilityofteninvestmentmanagementtoaportfoliomanagerprovidedthatitneverthelessretainsrealsubstanceandstillcarriesoutatleastoneofinvestmentmanagementorriskmanagement.Inanon-EuropeancontextthemanagerforafundintheformofapartnershipisoftenthegeneralpartnerGP.Forfundsintheformofaninvestmentcompanythemanagerwilloftenbethefunditselfwhereitisself-managed.Inbothcaseshoweveritispermissibleforthefundifitwishestotransfertheresponsibilityofmanage-menttoathirdpartyinwhichcasethatentitywouldbethemanagerinstead.Carewillneedtobetakenbyfundsthereforetoensurethatthecorrectmanagerisidentiedespeciallyifthetransitionalprovisionsaretobeusedasdiscussedbelow.WhatTriggerstheAIFMDTheAIFMDistriggeredbymarketingintheEEA.TheAIFMDdenesmarketingasdirectorindirectoeringorplacementattheinitiativeofthemanagerofunitsorsharesinafund.Therearehoweverdierentinterpreta-tionsofthedenitionofmarketingthatafundmanagershouldfullyunderstand.FirsttheAIFMDprovidesthatreversesolicitationisnotmarketingthatiswheretheinitiativefortheinvestmentcomesfromtheinvestorratherthanfromthemanager.ThisapproachmaybeusefulforamanagerwhohasasmallnumberofrepeatEuropeaninvestorsinaseriesofitsfundsalthoughthemanagerwillneedtobecarefulnottoabusetheprovisionandtomaintainproperrecords.AIFMDWhatNon-EuropeanManagersMustKnow6