26/01/2012 Author: David Beattie

AIFMD polls as most ambiguous new regulation facing hedge fund industry

The Alternative Investment Fund Managers Directive is proving the most troublesome of the recent slew of regulations facing the hedge fund industry, according to more than a third of those quizzed yesterday at a Bloomberg conference in London, detailed an IMS Group statement Thursday.

Specifically, the upcoming regulation’s final substance and resultant effect on the industry were the aspects called most into question.

More than a third of delegates polled found that AIFMD raises the most questions when considering the direct impact it will have on fund managers, while nearly a quarter of delegates said it will have the most impact in terms of direct cost and necessary change to operating and compliance procedures, said IMS.

Delegates were also concerned about the impact of UK regulatory change (33%), FATCA (8%), SEC Registration (8%) and MiFID II (7%) on costs to businesses and on implementation of necessary changes to compliance and operating procedures.

“The tide of regulation is only going to get stronger and the regulatory landscape will become even more difficult to negotiate. The process of AIFMD is a moveable feast with the ability to throw up constant surprises,” said event speaker Lord Paul Myners.  

“The uncertainty surrounding financial regulation is enormous and it is impossible to fully comprehend the impact it will have on businesses. The buyside needs to get better at lobbying on regulation from the outset and actively engage with the regulators,” added the peer.

IMS head of regulation Peter Moore said: “The results of the survey highlight the need for greater understanding of AIFMD and other regulatory regimes affecting the market. The cost/benefit reports of EU regulation are conspicuous by their absence.”