Wed, May 24, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cerulli claims regulators risk 'ensnaring unintended victims' with AIFMD

Tuesday, March 05, 2013
Opalesque Industry Update - New research from Cerulli Associates. finds that national differences are appearing as the deadline for the AIFMD approaches.

National regulators risk ensnaring unintended victims as they transpose the Alternative Investment Fund Managers Directive (AIFMD), according to The Cerulli Edge-Global Edition, March 2013 Issue. Domestic flexibility in adopting the directive is throwing the industry a multitude of curve balls. Spanish guaranteed funds may face a life-threatening retail market ban if national financial regulator CNMV gets transposition wrong. German open-ended property funds, which were never in the directive's sights, could also be hit. Managers are adopting a wait-and-see approach.

Meanwhile, alternatives managers across the Channel fear a cross-border marketing black hole over authorization delays. "Although U.K. alternative investment funds (AIFs) will have one year's grace to get their authorization after the implementation deadline of July 22, 2013, the Financial Services Authority will not be accepting applications any time soon," said Barbara Wall, a director at Cerulli Associates. "With non-authorized private placements choked off in Germany and possibly other EU domiciles, United Kingdom-domiciled AIFs will have to abandon their cross-border money raising efforts until their passports arrive in the post."

Non-EU managers face even greater uncertainty. The directive does allow these managers to continue distributing their non-EU alternative investment funds, so long as they adhere to national private placement regimes. But the fact it also requires a formal cooperation agreement between the regulator of the fund's home jurisdiction and the EU country into which the fund is to be distributed is raising some concerns.

Yoon Ng, a Cerulli associate director, commented, "Only Switzerland and Brazil have so far established cooperation agreements. The jury is still out on whether there will be an exodus of Swiss hedge fund managers to EU jurisdictions, but feedback from local fund groups indicates that the Swiss regulator has probably done enough to ensure Switzerland retains its appeal as a hedge funds center."

The United States is currently in negotiation with the EU, but it remains to be seen whether cooperation agreements will be in place for July. U.S. managers appear to be in the dark about the work required to ready themselves for the new regime. They need to act now as the penalty for non-compliance with the directive is likely to be severe.

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Investing - Third Point's Loeb surfs on as hedge fund washout continues, George Soros has added to his losing bets against the stock market, Hedge funds, VCs and the CIA are throwing money at ex-Bridgewater data scientists' startup, Hedge funds shed retail amid fears of "apocalypse"[more]

    Third Point's Loeb surfs on as hedge fund washout continues From Reuters/Nasdaq.com: Billionaire investor Daniel Loeb said on Thursday that he is still making money even as the hedge fund industry struggles. Loeb, who oversees the $16 billion hedge fund firm Third Point LLC, sa

  2. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  3. Soon hedge fund investors won't bet on a man, they will bet on a machine[more]

    From Forexlive.com: The Wall Street Journal is in the midst of a 17-part series that looks at the rise of quant funds. The AUM and money invested in quant funds still trails traditional asset managers but the gap is closing. What's truly amazing is volume. Quant funds make up 27% of trading vo

  4. J.P. Morgan Asset Management launches ultra-short income ETF[more]

    Komfie Manalo, Opalesque Asia: J.P. Morgan Asset Management, the $1.5tln investment management arm of JPMorgan Chase & Co., has launched the JPMorgan Ultra-Short Income ETF (JPST), an actively managed ETF that seeks to provide current incom

  5. News Briefs - A former hedge fund manager is running a free masters program in financial engineering, Trinity Fund Administration Ltd joining the Mainstream BPO Group, Chelsea Clinton's husband joins Silicon Valley's Social Capital, The quants run Wall Street now[more]

    A former hedge fund manager is running a free masters program in financial engineering A former hedge funder is offering a free masters degree in a field that's integral to Wall Street's future. Igor Tulchinsky, a former managing director at Millennium Partners, a New York-based hedge fu