AIFMD is now live
22 July 2013 London
Image: Shutterstock
The deadline for the Alternative Investment Fund Managers Directive has passed.
Alternative investment fund managers established within the EU must have been authorised from 22 July 2013, with rules that will significantly broaden the role and scope of depositories.
The directive requires EU alternative investment fund managers to appoint an independent custodian for each alternative investment fund that they manage, and have independent risk management and valuation functions.
They will also be granted a passport to either manage alternative investment funds in other EU member states, or market units or shares in alternative investment funds to professional investors.
Non-EU alternative investment fund managers marketing the funds within the EU will be required to comply with disclosure requirements to both investors and EU regulators.
Stephen Kinns, a partner at consultancy firm Crossbridge, said that although service providers are ready to deliver their enhanced offerings now, European alternative investment managers are not rushing to the door.
“…We won’t see the new infrastructure being used until early next year. There is a mismatch in expectations between clients wanting a full service solution at zero incremental cost, and service providers who are looking to offer a regulatory minimum with a price increase to reflect the increased liability."
"Service providers will need to use the transitional period in the next few months to make sure they have enough operational capacity in place to start executing in line with the new directive in early 2014.”
Speaking after AIFMD went live, Philippe Ricard, global head of alternative fund services products at BNP Paribas Securities Services, said: “[The bank] has significantly invested to ramp up our solutions, and ... we provide the largest depository network in Europe, having already implemented AIFMD compliant processes across all jurisdictions."
Alternative investment fund managers established within the EU must have been authorised from 22 July 2013, with rules that will significantly broaden the role and scope of depositories.
The directive requires EU alternative investment fund managers to appoint an independent custodian for each alternative investment fund that they manage, and have independent risk management and valuation functions.
They will also be granted a passport to either manage alternative investment funds in other EU member states, or market units or shares in alternative investment funds to professional investors.
Non-EU alternative investment fund managers marketing the funds within the EU will be required to comply with disclosure requirements to both investors and EU regulators.
Stephen Kinns, a partner at consultancy firm Crossbridge, said that although service providers are ready to deliver their enhanced offerings now, European alternative investment managers are not rushing to the door.
“…We won’t see the new infrastructure being used until early next year. There is a mismatch in expectations between clients wanting a full service solution at zero incremental cost, and service providers who are looking to offer a regulatory minimum with a price increase to reflect the increased liability."
"Service providers will need to use the transitional period in the next few months to make sure they have enough operational capacity in place to start executing in line with the new directive in early 2014.”
Speaking after AIFMD went live, Philippe Ricard, global head of alternative fund services products at BNP Paribas Securities Services, said: “[The bank] has significantly invested to ramp up our solutions, and ... we provide the largest depository network in Europe, having already implemented AIFMD compliant processes across all jurisdictions."
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