Opalesque Industry Update - Preqin’s recent survey of 220 hedge fund managers around the world reveals that there is still uncertainty surrounding
the Alternative Investment Fund Managers Directive (AIFMD) among many managers, with 40% of managers that will
be impacted by the AIFMD waiting for finalizations of regulations and further advice from their local regulators before
taking action. |
The AIFMD will be implemented into national law by EU member states on 22 July 2013. New Alternative Investment Fund Managers (AIFMs) will be required to comply with the directive going forwards, although existing AIFMs will have until 22 July 2014 to apply for authorization to their regulator.
These interviews also revealed that North American hedge fund managers that will be affected by the AIFMD are less prepared than their European counterparts, with 51% of North America-based respondents looking to market their funds to European investors already compliant or will be compliant by July 2014 compared to 64% of respondents based in Europe that will be impacted by the regulation.
Other Key Facts:
• 22% of hedge fund managers interviewed by Preqin that will be impacted by AIFMD are already compliant,
and 3% of those affected feel they will not be compliant by the July 2014 deadline.
Many institutional investors have yet to be convinced about the benefits of regulation in the hedge fund industry and they will be watching closely to see the effect that the AIFMD has on the fund management industry. However, with over a third of investors believing that regulation is positive for the industry, the potential is the AIFMD “brand” could lead to greater inflows into hedge funds as investors seek out the regulator’s seal of approval. With uncertainty still surrounding the impact of the directive, it may not be possible to assess the full impact of the AIFMD on the hedge fund universe before 2014.”