Newsletter-21

246 NEWSLETTER 2016 that are marketed in the EU without any condition as to where they are based 7 . Situation Before – Lack of Singularity in Regulation In the absence of a single European fund structure for alternative investment funds, Invest Europe, formerly known as the European Private Equity and Venture Capital Association 8 , (“EVCA”) used to advocate the mutual recognition of existing national structures. The EVCA was underlining that such single regulation would ensure that the entire fund’s investors and managers, regardless of their country of origin, would have the same opportunities and benefits. In order to provide a fiscally transparent structure, both for investors targeting AIFs, managers of such funds and regulatory bodies as such to work in harmony, effectively, it was believed to be essential that AIFs be mutually recognized in each European country. It was also foreseen that such a unifying legislative text would induce cross-border activ- ity, furthering the levels of capital available for European private com- panies as investment targets and, ultimately, returns for underlying trans-national institutional investors 9 . Aim of the Directive The AIFMD pursues to regulate the managers of AIFs, includ- ing hedge funds, private equity funds, and retail funds. The Directive brings forward a dynamic regulatory process, where there are many implementing measures, on which the European Commission has asked European Securities and Markets Authority (“ESMA”) 10 to pro- 7 Alternative Investment Fund Managers Directive (AIFMD)—timeline Lexis PSL: Financial Services >Financial Services regulation >getting started; EU FS regula- tion—timelines >Alternative Investment Fund Managers Directive (AIFMD)— timeline (Accessed on 29/12/2016 through Lexis Library database). 8 EVCA becomes ‘Invest Europe: The Voice of Private Capital’ dated 1 October 2015 accessed at http://www.investeurope.eu/news-opinion/newsroom/press-re- leases/evca-becomes-invest-europe/ (Accessed on 30/12/2016). 9 Private Equity Fund Structures in Europe / An EVCA Tax & Legal Committee Special Paper – June 2010 – European Private Equity & Venture Capital Associa- tion. 10 Lexis PSLCorporate > Financial services regulation for corporate lawyers; ESMA > Guide to the European Securities and Markets Authority (ESMA) (Accessed on