Funds view heavy regulation as the key 2013 challenge – KNEIP research

Fund managers worldwide overwhelmingly consider the burden of regulation to be the biggest challenge they will face in the coming year.

A survey from information provider KNIEP shows 82% of 130 companies polled feel that heavy regulation is the main issue facing the industry over the next twelve months.

Mario Mantrisi, chief strategy and research officer at KNEIP, said: “Ensuring compliance with changing legislation is fast becoming the priority for fund managers. Given the pace and volume of new measures over recent years, it is unsurprising that this has been identified as the key challenge in 2013.”

Respondents were also asked to rank which specific pieces of regulation they feel will have the most impact on the fund management industry, with 57% of managers listing Alternative Investment Fund Managers Directive (AIFMD) above the likes of UCITS V, Solvency II and MIFID II.

The survey also showed that 40% of asset managers are unprepared for the impact of AIFMD, which will become law in every EU member state by July 2013.

“After a long and involved consultation period, AIFMD will soon come into effect and will be a watershed moment for the alternatives industry,” said Mantrisi.

“While larger alternatives houses may have the resources to fulfil the new transparency and reporting requirements, smaller managers may struggle. There is an understandable concern that AIFMD will be a time burden that may impact their core business capabilities and as the deadline approaches, many managers will now be considering external help.”

Founded in 1993, with offices in Belgium, France, Germany, Luxembourg, Switzerland and the UK, KNEIP serves more than 420 global fund management companies.


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