AIFMD2 Directive (EU) 2024/927
- Issuing authority
- Set by each member state
- Effective date
- Most provisions apply from 16 April 2026
- Scope
- All EU Member States
Key requirements
Updates the rules for managers of alternative investment funds (private equity, hedge funds, real estate funds). For AML purposes, the key bit: funds and managers based in countries on the EU's AML high-risk list (like the BVI from April 2026) can no longer be marketed across the EU under private placement regimes.
Quick Summary
AIFMD2 updates the EU rules for managing alternative investment funds, such as private equity, hedge funds, real estate funds, infrastructure funds, and private debt funds. It introduces new rules to strengthen supervision, improve investor protection, and reduce financial crime risks across the investment fund industry.
What is it?
Think of AIFMD2 as an update to the rulebook for investment fund managers in the EU. It changes how alternative investment funds are managed and marketed, while giving regulators stronger oversight of the sector. Some of the new rules are also designed to reduce the risk of money laundering.
Who does it apply to?
- Alternative Investment Fund Managers (AIFMs)
- Private equity firms
- Hedge fund managers
- Real estate
- fund managers
- Infrastructure fund managers
- Private debt fund managers
- Investment firms that market alternative investment funds in the EU
Why does it matter?
Alternative investment funds can move large amounts of money across different countries, making them attractive targets for criminals who want to hide or move illegal funds. AIFMD2 helps reduce these risks by strengthening oversight and placing additional restrictions on funds and managers connected to countries with weaker AML controls.
What should firms do?
- Firms should review the new AIFMD2 requirements and understand how they affect their business.
- If they manage or market alternative investment funds in the EU, they should check whether any funds or managers are connected to countries on the EU High-Risk Third Countries List, as this may affect whether those funds can be marketed in the EU.
- Firms should also update their internal policies and monitor future changes to the rules.