Sat, Dec 10, 2016
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. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest