Prior to the 2008 financial crisis, the hedge fund industry was regulated on a national level only. The AIFMD introduced a set of new requirements in relation to, amongst others, capitalization, the appointment of a depositary, risk, liquidity and disclosure. Moreover, the AIFMD introduced new rules on the compensation of employees in order to discourage undue risks being taken for (temporary) performance incentives.
The AIFMD has a considerable impact on most hedge funds, especially in terms of compliance and operational framework, to ensure that they comply with the increased regulatory and reporting obligations.
At present, Darwin Depositary Services is acting as depositary for a large number of hedge funds established in the Netherlands. Next to this, Darwin Depositary Services is rendering ‘depo lite’ services for various non-EU funds, subject to AIFMD legislation