AIFM provision threatens depository banks

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A little-known provision in the Alternative Investment Fund Managers (AIFM) Directive has the potential to change the risk profile of depository banks to such an extent it could force them to leave the industry. The directive, which was approved by the European Parliament and the European Commission on May 18, forms part of the Commission’s post-financial crisis programme to extend regulation and oversight to all activities that raise risk. The aim is to introduce harmonised requirement