In its latest survey, BNY Mellon has found that only 19% of alternative investment fund managers (AIFMs) have submitted authorization for Alternative Investment Fund Managers Directive (AIFMD) to their regulator, while 81% of them are yet to seek authorization.
In the survey, 41% of respondents said they plan to submit their application in the first quarter of 2014, while another 20% said they would submit by the end of deadline.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Majority of survey respondents believe that the project/one-off costs of fulfilling AIFMD risk and compliance requirements will be at least $100,000 per institution.
About 60% of surveyed respondents said they have either appointed, or are in the process of appointing, an AIFMD compliant depositary service that is required under the authorization application process.
BNY Mellon EMEA asset servicing head Hani Kablawi said there is a danger of a significant bottleneck developing in the application process, as many managers surveyed are yet to fully address their AIFMD requirements in time for the July deadline.
"Allowing for the time required by regulators to review applications, and for depositary and administrative service providers to make the relevant arrangements, there is a risk that funds will miss the application deadline.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"The slow progress we see around applications highlights both the uncertainties and practical challenges the industry is facing getting to grips with AIFMD," Kablawi added.
The directive is expected to be implemented by 22 July 2014. However, delays of submitting authorization are likely to happen.
The survey, which was conducted in association with FTI Consulting, questioned small, medium and large fund managers of over 50 firms from Europe, the US, Asia and Latin America.
