The implementation of the Alternative Investment Fund Managers Directive (AIFMD) is incomplete and significant uncertainty remains, the Alternative Investment Management Association (AIMA), the global hedge fund industry association, has said on the day that the AIFMD finally comes fully into force.
A number of European countries have not implemented the AIFMD to date or not implemented it completely. AIMA said this is hindering managers’ ability to do business and means that investors in certain countries may be prevented from accessing alternative investment funds.
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AIMA said that even where the AIFMD has been implemented, managers in some European countries are facing delays in being authorised by their national regulators. This means that managers for now may be unable to conduct marketing campaigns and reach investors in certain countries.
There is uncertainty over how certain measures are being interpreted and applied by different countries, which has left certain key relationships between managers and service providers in a state of flux, said AIMA. AIMA also said that regulatory reporting templates are still to be finalised, despite reporting requirements due to take effect in January 2015. AIMA said managers would have little time to build out their IT systems, while a lack of consistency between reporting requirements in different European countries would push compliance costs higher, especially for non-EU managers seeking to market under the respective private placement regimes.
AIMA CEO Jack Inglis said: "AIMA has continued to work very closely with Member States and competent authorities on the outstanding issues relevant to our industry. Unfortunately, like with many pieces of regulatory reform we have seen negotiated and applied in recent past, AIFMD implementation has proven to be more complex than originally expected, not only for the industry but also for the regulatory community. We are heartened to see that European policymakers are starting to recognise that core reform measures need more time to be put in practice and that more generous transposition deadlines are being considered.
"However, it should also be noted today that enormous progress has been made thus far by the industry and substantial resources have been invested in complying with the AIFMD. As it did during the transition period with various AIFMD planners and compliance tool-kits, AIMA will continue to support managers with resources relating to sound practices and due diligence questionnaires as a result of AIFMD and other recent regulatory changes. AIMA will continue to help managers navigate the complex web of rules applicable to their businesses through guidance, training and other educational programmes."
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