Thursday, 8 December 2016
Last updated 7 hours ago
Jul 15 2014 | 8:10am ET
European alternative investment fund managers must meet new transparency reporting requirements in a week's time and a new poll suggests as many as a third of them may not be ready.
Under Europe's Alternative Investment Fund Managers Directive, European Union fund managers must submit their applications for authorization by July 22nd.
Confluence, a Pittsburgh, PA-based provider of investment data management automation, surveyed 116 asset managers and fund administration providers between June 16 and July 1. When asked how prepared they believed fund managers are to meet the transparency reporting requirements, 34% said not very ready or were unsure of their level of preparedness. Only 16% believed affected managers were “very prepared.”
In addition, 28% of respondents said they believe fund managers are still reviewing their options for meeting AIFMD transparency requirements—while some plan to use in-house reporting solutions, 22% of respondents plan to use an external solution to solve the regulatory reporting problem.
Melvin Jayawardana, Confluence’s European markets manager, said in a statement:
“The Confluence survey highlights the lack of readiness within the industry ahead of the AIFMD deadline despite being less than a fortnight away. European asset managers and fund administrators face big challenges getting up to speed on the full ramifications of the directive and the scope of work it will require of their back-office operations.”
Asked about the challenges of meeting AIFMD requirements, almost one third of respondents cited the regulatory burden as their single most important concern.