The Alternative Investment Fund Managers Directive ultimately puts hedge funds under the supervision of an EU regulatory body, though it also impacts some retail products, such as fund of funds. It affects multiple areas including valuation requirements, disclosure to investors and remuneration guidelines.
Earlier this month, the FSA issued the first of two consultation papers on the implementation of AIFMD in the UK.
KNEIP’s survey gathered the thoughts of more than 130 fund providers worldwide. Mario Mantrisi, chief strategy and research officer, said AIFMD would be a “watershed moment” for the alternatives industry.
“While larger alternatives houses may have the resources to fulfil the new transparency and reporting requirements, smaller managers may struggle,” he added.
“There is an understandable concern that AIFMD will be a time burden that may impact their core business capabilities and as the deadline approaches, many managers will now be considering external help.”
More than half of the respondents (57%) ranked AIFMD above the likes of Ucits V, Solvency II and Mifid II as having the most impact on the fund management industry going forward.
The research also found that a vast majority (82%) of fund managers feel that heavy regulation is the main issue facing the industry over the coming 12 months.
Mantrisi added: “Ensuring compliance with changing legislation is fast becoming the priority for fund managers. Given the pace and volume of new measures over recent years, it is unsurprising that this has been identified as the key challenge in 2013.”
