Compliance shortfall on eve of AIFMD deadline
21 July 2014 London
Image: Shutterstock
Research by BNY Mellon shows a compliance shortfall among alternative investment funds (AIFs) on the eve of the 22 July deadline for Alternative Investment Fund Managers Directive (AIFMD) authorisation.
The research survey, confirms that 82 percent of managers have confirmed the required AIFM structure has been established to meet the deadline, but 44 percent will not have received authorisation from their local regulator by the 22 July.
The survey indicates that fund managers must expect higher-than-expected levels of cost and complexity when it comes to meeting requirements around the UCITS V regulation, which seeks t align the UCITS regulatory framework with aspects of AIFMD in 2016.
Created in conjunction with FTI Consulting, the survey has respondents from 58 firms across Europe, the US and Asia that collectively hold over $406 billion in assets under management.
Hani Kablawi, head of asset servicing for Europe, Middle East and Africa at BNY Mellon, said: "While AIFMD is upon us, many funds have attained full compliance. However, it has been clear since we began our surveys last summer that the industry has consistently been playing catch up as firms have sought to hit tomorrow's deadline.”
“It hard to say at this juncture if this pattern of delayed adoption will have a meaningful or lasting impact – but it is clear that all market participants, regulators included, are looking to be pragmatic when it comes to implementing the necessary changes.”
"With UCITS V pending and expected to be even more far-reaching in scope, now is the time for fund managers to start planning and to identify the lessons learned from AIFMD that can then be applied as they look to successfully navigate the changes that will bring around depositary functions, remuneration and administrative sanctions."
The research survey, confirms that 82 percent of managers have confirmed the required AIFM structure has been established to meet the deadline, but 44 percent will not have received authorisation from their local regulator by the 22 July.
The survey indicates that fund managers must expect higher-than-expected levels of cost and complexity when it comes to meeting requirements around the UCITS V regulation, which seeks t align the UCITS regulatory framework with aspects of AIFMD in 2016.
Created in conjunction with FTI Consulting, the survey has respondents from 58 firms across Europe, the US and Asia that collectively hold over $406 billion in assets under management.
Hani Kablawi, head of asset servicing for Europe, Middle East and Africa at BNY Mellon, said: "While AIFMD is upon us, many funds have attained full compliance. However, it has been clear since we began our surveys last summer that the industry has consistently been playing catch up as firms have sought to hit tomorrow's deadline.”
“It hard to say at this juncture if this pattern of delayed adoption will have a meaningful or lasting impact – but it is clear that all market participants, regulators included, are looking to be pragmatic when it comes to implementing the necessary changes.”
"With UCITS V pending and expected to be even more far-reaching in scope, now is the time for fund managers to start planning and to identify the lessons learned from AIFMD that can then be applied as they look to successfully navigate the changes that will bring around depositary functions, remuneration and administrative sanctions."
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