Sun, Apr 26, 2015
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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

  4. Update: Wall Street has strong feelings about Jon Corzine trying to make a comeback[more]

    From Businessinsider.com.au: Former New Jersey Governor Jon Corzine is thinking about starting his own hedge fund, according to the Wall Street Journal, and because of the way his last firm imploded, Wall Street has strong feelings about that. “Truth is the larger seeders would never give him money

  5. Opalesque Exclusive: Cybersecurity and hedge funds - A manager’s experience, Part Four[more]

    Benedicte Gravrand, Opalesque Geneva: Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of

 

banner