AIFM directive

The AIFM directive was approved by the European Parliament on 11 November 2010. It will come into effect during 2012, and fund managers subject to the directive will need to apply for authorisation in 2013. The directive does allow for the continued existence of investment trusts, including self-managed trusts, with no substantial changes to their governance arrangements. However our view remains that investment trusts, as low-risk, diversified equity investment vehicles already subject to a robust governance regime and regulated by the Listing Rules, should never have been caught by the directive.