AIFMD Survey: Responding to the new reality
The Alternative Investment Fund Managers Directive (AIFMD) was born out of the financial crisis and drafted amid a storm of controversy that continues to rage. For the first time, managers of non-UCITS funds, both onshore and offshore, will be required to seek authorisation under a new and comprehensive EU regulatory framework with far-reaching business consequences.
As organisations prepare for the new regime, Deloitte conducted a survey of UK-based investment managers from across the hedge fund, private equity and real estate sectors, to determine how they plan to respond. The results provided key insights into the industry approach to AIFMD, from implications for the market landscape, product development and distribution strategies to views on detailed implementation issues.
Some of the key findings include:
- More than two-thirds (68%) believe that AIFMD will reduce the competitiveness of the EU’s alternative investment funds industry
- 68% also believe the directive will result in fewer non-EU managers operating in the EU and 61% believe AIFMD will affect their choice of fund domicile
- 72% of surveyed managers view AIFMD as a business threat
- The biggest concerns for fund managers are depositary costs (84%), delegation (78%), changes to contractual arrangements and routes to market (67%)
- Smaller managers, private equity and real estate are more likely to see AIFMD as a business threat. Those companies that regard AIFMD as an opportunity tend to be large (managing at least £1bn of assets) and have an existing focus on onshore, regulated funds
- 41% of managers surveyed intend to take advantage of the EU passport to extend fund distribution