Survey Shows Continued Resentment of AIFM Directive

Dec 15 2010 | 8:39am ET

The majority of the 100 alternative assets fund managers and investors polled by the Preqin research group harbor “significant resentment” against the EU’s new rules for alternative investment fund managers.

A number of concerns were raised repeatedly by respondents, said Tim Friedman of Preqin, including “lack of differentiation between the asset classes, the negative impact liquidity requirements will have on innovation, and the fact that the legislation has been constructed by politicians with little or no understanding of the alternative assets industry. Perhaps most of all, there is a feeling that alternative assets firms were not responsible for the financial crisis, and that the new legislation will create significant extra burden while not serving to enhance the stability of financial markets.”

The Alternative Investment Fund Managers Directive was adopted by the EU in November 2010. It is expected to come into effect in the first half of 2011, after which EU member countries will have two years to adopt its provisions.

One third of respondents expressed some support for the directive, particularly those in countries—like Italy—where existing laws are more restrictive than those to be imposed under the directive.

Preqin reports that 89% of respondents believe the directive should be amended to take into account differences between asset classes (it will apply to hedge funds, commodity funds, private equity funds and real estate funds).

Another 45% think fund managers will relocate outside of Europe as a result of the new rules and 26% felt their own firms were likely to relocate.

 


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.