Opalesque Industry Update - This week Dutch Parliament approved the law, which implements the EC Directive dealing with the Alternative Investment Fund Managers Directive (AIFMD).|
The Netherlands is the first European country which implemented this important new piece of regulation created to limit risks for investors in those alternative investment funds. According to a KPMG survey the Netherlands is now between the top rated countries as potential business location for asset managers and their funds.
The AIFMD deals with stricter EU regulation on alternative investment fund managers offering alternative investment funds, ranging from hedge and private equity fund products to real estate investment funds. The fast implementation is the result of a coordinated effort of the Ministry of Finance, the Dutch regulator AFM and market participants. A tailor made AIFMD sounding board supported the Ministry in the implementation process. Together with the existing tax rules for alternative investment funds , the Netherlands is now between the top rated countries as potential business location for asset managers and their funds according to the KPMG survey. KPMG’s partner Marco Frikkee states: “Dutch based asset managers– with use of the new set of legislation - could optimally use easing tax rules to reduce unnecessary costs inherent to existing tax and legal structures. With the current financial infrastructure it is expected that the Netherlands is able to attract some of the asset managers to bring business over from their current offshore locations.”
Market participants in the Netherlands work together on more occasions. An example is the annual GAIM hedge fund conference in Monaco. Holland Financial Centre (HFC) has, for the past three years, organised the presence of the Dutch participants during this event. HFC is organising the GAIM participation to promote the Netherlands as a centre for alternative investments. Being the first country to implement AIFMD will be a highlight to promote on next year’s trip to GAIM. “The Netherlands already is in the top 5 globally when it comes to hedge fund manager locations, according to the Pertrac 2011 annual survey,” Mark Baak of Privium Fund Management states.