Tue, Sep 30, 2014
A A A
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

amb
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. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar

  3. Europe - Ed Miliband's war on hedge funds could damage City of London[more]

    From Telegraph.co.uk: Ed Miliband’s plans to wage war on hedge funds could be potentially more damaging to the City of London than even the financial transaction tax (FTT), senior banking sources warned on Tuesday night. The Leader of the Opposition took aim at a number of industries as part of his

  4. News Briefs - SEC probes Pimco ETF over pricing irregularities, BEPs: Action plan released and UK first to adopt country-by-country reporting[more]

    SEC probes Pimco ETF over pricing irregularities The Securities and Exchange Commission is investigating Pimco’s pricing of exchange traded funds, the latest cloud to hang over the world’s largest bond manager, which has been dogged by poor performance and management infighting. Pimco on

  5. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is