In this practice note, Margaret Chamberlain, Jane Tuckley and Tim Lewis, partners in Travers Smith's Financial Services and Markets department, consider the state of play on the proposed Alternative Investment Fund Managers Directive (AIFM Directive), the original text of which was published by the European Commission in April 2009.

The Economic and Monetary Affairs Committee of the European Parliament (Parliament) adopted its position on the proposed AIFM Directive on 17 May 2010. The European finance ministers at the EU Economic and Financial Affairs Council (ECOFIN) meeting on 18 May 2010 approved a draft text of the AIFM Directive to be negotiated on behalf of the Council of the European Union (Council). This practice note analyses and comments on these texts, highlighting the similarities and the key differences between the Council and the Parliament positions.