The hedge fund industry is greeting the final text of the European Union's new alternative investments regulations with guarded relief, mixed with a heavy dose of criticism.
The European Commission this week accepted the implementing rules for the Alternative Investment Fund Managers Directive, giving national regulators six months to put it in place.
"We are pleased that the implementing measures of the AIFMD has been published," AIMA chief Andrew Baker said. "This will enable the industry to make its final preparations for implementing the Directive by July 2013."
"While we may not agree with all of the final provisions—notably on areas like depositaries and delegation—it is now important to look forward," Baker said.
Julie Patterson, the Investment Management Association's director of authorized funds and tax, isn't so sure, calling the final text "a disappointing outcome that arises out of a flawed process."
"Some of the detailed provisions in this regulation are out of sync or even conflict with other regulations that managers are required to follow and will impose additional costs for investors without conferring clear benefits," she said. "They make require the setting-up of additional companies within groups, reduce investor choice in non-EU markets, bring non-EU funds into quarterly reporting to EU regulators and could render 'multi-manager' type strategies impossible."