Sat, Nov 28, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

DMS advises U.S. fund managers to get European substance

Monday, May 12, 2014

Derek Delaney
Benedicte Gravrand, Opalesque Geneva:

In July of this year, it will be illegal for fund managers to market in Europe unless they are compliant with the AIFMD. What makes this regulation so weighty is that 25% of U.S. capital comes from Europe and most U.S. managers are unaware that their prospective investors may become illegal this summer.

The European Union's Alternative Investment Fund Managers Directive (AIFMD) requires more reporting and compliance than the U.S. Securities and Exchange Commission (SEC). U.S. investment managers operating in the EU should acclimatise.

According to Ernst & Young, they can do so in three ways:

• Establish a EU manager and fund. This gives managers access to the entire EU for marketing, although they have to deal with compensation rules and more compliance; • Rely on the somewhat uncertain national private placement regimes (NPPRs), in which they trade compliance burdens for reporting burdens, as they have to repot to multiple regulators; • Implement reverse solicitation, thus deal with minimal compliance and cease marketing in the EU (and make sure to be able to prove it).


To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November