The Directive 2011/61/EU establishes a comprehensive regulatory framework for Alternative Investment Fund Managers (AIFMs) within the European Union. It outlines requirements for the authorisation, operation, and supervisory oversight of AIFMs managing or marketing alternative investment funds (AIFs). This framework aims to mitigate systemic risks and ensure investor protection by mandating robust governance structures and transparency in the activities of AIFMs, including effective risk management and appropriate remuneration policies.

AIFMs are required to provide detailed documentation about their operations, enabling competent authorities to monitor compliance effectively. The directive also sets conditions for non-EU AIFMs seeking to manage or market funds within the EU, emphasising cooperative agreements between regulatory bodies. Overall, this regulation seeks to foster a harmonised and secure investment landscape across member states, balancing regulatory oversight with the promotion of market efficiency.