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 europe||27%|
|Encourage managers to increase operations in Europe||14%|
|A combination of 1 & 2||22%|
|Too early to say||38%|
|What will be the key impact on depositaries?||% responses|
|Increase the range of services or markets||9%|
|Reduce the range of service or markets||25%|
|Widen the provision of services to more asset classes||10%|
|Specialize in the provision of services to specific asset classes||23%|
|Too early to say||39%|
|What is your main concern about AIFMD?||% responses|
|3rd country rules||14%|
|Depositary and prime broker rules||26%|
|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.