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AIFMD still causing uncertainty
24 July 2012
A new survey highlights the continued confusion over the AIFM directive
Fund managers are still unsure about how the Alternative Investment Fund Managers (AIFM) directive will impact their business, according to a survey by consultancy firm IMS Group.
The directive has been the focus of heated debate since it was first proposed by the European Commission. Yet with just a year to go until its implementation, 41% of survey respondents were still assessing whether it would cause managers to make structural changes to their organisation. To add to the uncertainty, the final detail of directive – which was supposed to be released on July 22 - will be published later than planned.
The majority of respondents (77%) said regulatory initiatives such as the AIFM directive will have little or no impact on the attraction of London as a financial hub.
Risk management (21%) and capital requirements (19%) were the top areas of concern under the directive, followed by depositary liability (14%) and remuneration (12%). Nearly 70% said the directive would have little positive impact on the ability of regulators to manage systemic risk.
IMS’s head of regulation and compliance, Peter Moore, said final decisions on issues such as the definition of letter box entities could have a “material impact on how firms structure themselves post AIFMD implementation”.