22 July 2013

Hedgeweek: AIF managers need to adopt a UCITS mindset for AIFMD

The EU-wide AIFM Directive is set to shake up the apple cart somewhat, in terms of how hedge fund managers approach internal governance. Many London-based managers are, of course, perfectly comfortable with their compliance obligations under the FCA (formerly FSA).

Whilst the Directive, on face value, should not require managers to make wholesale changes internally, it will present a more nuanced challenge. In effect, AIF managers will need to approach the way they run their AIFMD-compliant firms almost as if they were UCITS managers because this is the filter through which the FCA will likely view managers.

In many respects, the EU Parliament intends the spirit of the UCITS framework to be closely mirrored in the Directive as it applies to alternative investment funds. They are, as it were, two sides of the same regulatory coin. As said, managers who choose to become AIFMD-compliant are not going to face massive internal upheaval. The key difference to what they were doing previously, and what they will be expected to do going forward.

Full article

AIFMD Implementation Guide report

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