The standard structure of the Alternative Investment Fund (AIF) is shown below. The Alternative Investment Fund Manager (AIFM) is responsible for portfolio management, risk management, distribution and fund administration including compliance. Of the listed activities, the AIFM is required by regulation to carry out at least risk management or portfolio management itself. All assets are regularly deposited with a depositary. This depositary must be licensed by the state. The AIFM is externally supervised by the Liechtenstein Financial Market Authority and, at the fund level, by the respective auditing company and, with regard to the fund’s assets, by its depositary.
Figure: Structure of a possible alternative investment fund in compliance with Law concerning the Managers of Alternative Investment Funds (AIFMG)