Wednesday, 25 May 2016
Last updated 9 hours ago
Jan 28 2014 | 1:09am ET
Hedge funds may not be taking impending European Union regulations seriously enough.
All hedge funds marketed in the EU has until June 22 to come into compliance with the Alternative Investment Fund Managers Directive. But with less than five months until that deadline, less than 20% of such funds have filed the necessary documents with regulators.
Hedge funds are required to appoint an EU-based independent depositary—a step many have not yet taken.
"Some people are looking at it and it makes them stand back and question part of their business model," BNY Mellon's Paul North told the Financial Times. "For others, some of the complexities arising out of the details are very challenging."
The difficulties come in spite of a delay in the rule's implementation: It was originally to come into effect last week.