Possible Consequences of the Implementation of the EU Directive on the Management of Alternative Investment Funds for the Austrian Risk Capital industry

In July 2011, the European Union issued the "Alternative Investment Fund Managers Directive (AIFMD)" which aims at establishing a regulatory framework for better surveillance and management of systemic risks that alternative investment fund managers may create for investors and other market participants concerned. Implementation of the AIFMD into national law has been initiated by the adoption of the AIFM Act (AIFMG) by the Austrian Parliament. The AIFMG addresses the fund manager rather than the fund itself. It provides for a simplified surveillance regime if the assets managed by the AIFM do not exceed certain thresholds. With the areas to be regulated by the AIFMG, the fund managers concerned face new terms of reference for their business operations as soon as the Act enters into force.