The Alternative Investment Fund Manager's Directive, the details of which were agreed by European politicians this week, are set to bring the first set of comprehensive guidelines designed for the private equity and hedge funds industries. Below are some of the key proposals:

The passport system to market funds: It is expected European firms will be able to apply for a passport to market to investors across Europe from late 2012 or early 2013. Non-EU firms are expected to be eligible for a passport from 2015. National private placement rules, which investors presently use to fundraise in individual countries are set to be phased out in 2018. The alternative investment industry welcomed a decision by the French finance ministry to back down in its pressure to remove the passport from the directive last week.