ALFI conference polls find investors expect rising costs, few benefits of AIFMD

The AIFM Directive is expected to drive up costs in the industry without necessarily providing commensurate benefits, according to the findings of delegate polls at the ALFI conference in London, which took place on 23 May.

Moderating a panel titled Responding to the Alternative Investment Managers Directive – Luxembourg positioning for the future regulatory landscape, Michael Ferguson, partner and asset management leader at Ernst & Young, asked delegates to ALFI’s latest annual London conference for their views on AIFMD via interactive polls.

Among the findings are that more than four in 10 expect rising compliance costs, that a quarter (25%) expect it to result in reduced depositary services, and few expressing hopes that it will increase the range of funds and servicing of funds across the region.

The London conference has become the third largest after ALFI’s own Spring and Autumn conferences, the Association of the Luxembourg Fund Industry confirmed. This year there were about 700 delegates signed up to attend.

 Do you think that the AIFM Directive will: % responses
 Encourage managers to streamline operations in europe27%
 Encourage managers to increase operations in Europe14%
 A combination of 1 & 222%
 Too early to say38%


What will be the key impact on depositaries? % responses
 Increase the range of services or markets9%
 Reduce the range of service or markets25%
 Widen the provision of services to more asset classes10%
 Specialize in the provision of services to specific asset classes23%
 Too early to say39%


What is your main concern about AIFMD?% responses 
Delegation rules15%
Remuneration rules4%
3rd country rules14%
Depositary and prime broker rules26%
Cost of compliance 42%


The AIFMD draft Level 2 measures are expected to be delivered by the European Commission by next month – in line with promises that it would do so before the summer.

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