Rules for AIF Managers in the Netherlands

The Netherlands’ economy and highly-developed infrastructure have transformed the country into an important business center in Europe. At the moment, the Netherlands is one of the most attractive countries for wealthy individuals interested in the investment funds industry. The legislation and EU directives allow for the opening of local and foreign investment funds.

One must know that investment funds must be administered by professionals called alternative investment fund managers (AIFMs). Dutch companies may also act as AIFMs. There are different regulations applying:

• -          to managers of alternative investment funds (AIFs) residing in the Netherlands;
• -          to AIFMs residing in other EU countries than the Netherlands;
• -          to AIFMs residing in countries outside Netherlands and the EU.

Our company formation representatives in the Netherlands can assist you in setting up alternative investment funds.

Regulations for Dutch and EU AIF managers

Dutch resident AIF managers are allowed to administer local investment funds once they have obtained authorization from the Authority for Financial Markets and the National Bank. The AIFM license can also be used to manage investment funds in other EU countries.

The AIF manager must also have a share capital of at least 225,000 euros if the assets managed by them are worth more than 250 million euros, and 125,000 euros if the assets are worth below the 250 million euro threshold. Trustees of investment funds in the Netherlands are required to have a minimum capital of 112,500 euros.

Dutch AIFMs are not required to apply for a license, provided that:

• -          they manage a fund with assets worth below 100 million euros;
• -          their portfolio is worth below 500 million euros.

In the case of managers of AIFs residents in other EU countries, they are subject to the licensing requirements available in their home countries and then use the passoporting rights granted by the AIFM EU Directive, under which they can offer their services in the Netherlands.

Regulations for non-EU AIFs in the Netherlands

Even if licensed in their home countries, foreign alternative investment funds managers must apply for a license with the Dutch Authority for Financial Markets in order to administer AIFs in this country. The same requirements apply for foreign companies acting as AIFMs. The only exceptions apply to USA, Jersey and Guernsey-based AIFMs.

For complete information on how to become an alternative investment funds manager, please contact our Dutch company registration agents.