According to the survey, while 72% of the surveyed managers viewed AIFMD as a business threat; the biggest concerns for fund managers are cited as depositary costs (84%), delegation (78%), changes to contractual arrangements and routes to market (67%).
And these factors were collectively cited as the reasons behind reducing the attractiveness of Europe as a place to do business.
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Further, smaller managers, private equity and real estate are more likely to see AIFMD as a business threat, while the companies that regard AIFMD as an opportunity manage at least GBP1 billion of assets.
Mike Hartwell, head of Investment Management at Deloitte Ireland, said: "Managers are facing significant organizational and operational change under AIFMD with far-reaching business consequences. The cost of doing business in Europe is set to rise disproportionately for smaller managers who have less internal resources to deal with the compliance responsibilities. There will clearly be a trade-off for managers to consider in determining their approach to AIFMD and managers will respond differently, depending on their distribution strategy and client profile."
"The survey shows that AIFMD will increase transparency for investors. More than half of respondents (53%) plan to provide investors with additional information as a result of AIFMD’s regulatory reporting requirements. However, increased transparency and investor protection will be counterbalanced by less choice and competition in the market, increased expense ratios, confusion over leverage figures and longer redemption terms in some cases," he added.
For the survey, Deloitte included 23 hedge, private equity and real estate fund managers who collectively managed GBP175 billion of assets.
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