After 18 months of extensive negotiations, the controversial AIFM Directive was adopted today by the European Parliament. The Directive applies to AIFMs established in the EU which manage one or more alternative investment funds ("AIFs") irrespective of where the AIFs are located, whether or not they are listed or what legal form the AIF takes. The Directive also applies to AIFMs established outside the EU which manage one or more AIF established in the EU or which market one or more (EU or non-EU) AIF within the EU.

A timeline of provisional dates is as follows:

AIFM Directive adopted: 11 November 2010

Entry of AIFM Directive into force: 1 January 2011

Deadline for transposition of AIFM Directive into national law: 1 January 2013

EU AIFM passport introduction: January 2013

Deadline for authorisation of AIFMs: 1 January 2014*

Non-EU AIFM passport introduction: April 2015 (dependent upon findings of ESMA report and the Commission adopting implementing legislation)

End of national private placement: July 2018 (dependent upon findings of second ESMA report and the Commission adopting implementing legislation)

*The AIFMD contains no grandfathering provisions and both AIFMs which have their registered office in an EU Member State and other AIFMs, to the extent necessary, will have to have made the changes necessary to comply with the AIFMD by 1 January 2014.