Tony Griffiths

01/02/2012 Author: Tony Griffiths

Regulatory load mounts for European managers

Late last week in London, the current state of hedge fund industry regulation, with a notable focus on Europe, was ably summarised by panellists at The IMS Group Regulatory Forum. Delegates in attendance may have felt uncertain about developments upon arrival, but they likely left with more questions and concerns than when they arrived.

An update on the EU’s Alternative Investment Fund Managers Directive (AIFMD) from Aima’s head of asset management regulation, Anna Larris, gave a flavour of the general uncertainty and the ground left to cover.  
 
Working on the technical draft of the AIFMD, the European Commission appears to be again shunning consultation in favour of a clandestine approach. The resultant text “could be worse” than earlier drafts, Larris warned.  

It’s not just the AIFMD that warrants attention. The sequel to Mifid is on its way and the first draft is teeming with “scary” new concepts, said Sidley Austin’s Leonard Ng. High-frequency traders in particular, take note.

Pushed back until April, the EU’s short-selling regulation also requires an eye, as does its Markets Abuse Directive, on which Aima continues to lobby. Throw in the admittedly less-imposing derivatives legislation and the in-tray for European managers starts to look particularly menacing.   

US managers have their own concerns, of course: SEC registration, Form PF and Fatca remain on the radar. All three potentially impact European firms.

One Greek proverb suggests that upon seeing a stockpile of troubles most individuals would be happy to take home their own. European managers may disagree.

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