MFA Blog

MFA Commentary Featured in Preqin AIFMD Study

Posted on July 17, 2014

New research from Preqin: “Global Hedge Fund Managers Respond to AIFMD” reveals that hedge fund managers are ramping up efforts to comply with the Directive, though many concerns and uncertainties remain . As the July 22 deadline for AIFMD implementation approaches, the report provides timely insight into the mindset of the alternative investment fund managers affected by the Directive.

Topics addressed in the report, which surveyed 150 global hedge fund managers include:
•The outlook on AIFMD as a regulatory framework and its impact
• Concerns about the Directive
• Preparations for compliance
• Plans for marketing in the EU

The report also illustrates some of the challenges inherent in rolling out such a comprehensive shift in regulatory requirements. While uncertainty is breeding frustration across the industry, nearly 58% of Europe-based managers are already compliant with the AIFMD or will be by the deadline, and nearly half of hedge fund managers with more than $1bn in assets under management are already compliant. MFA President and CEO Richard H. Baker authored the Foreword of the Preqin report and offered a constructive, global analysis of the results:

Complex regulations are borne out of complex financial markets, but as our global marketplace becomes more interconnected by the minute, it is critically important that regulators seek to harmonize rules across borders whenever possible. Ultimately,
we strongly believe that the transparency and regulatory oversight under a harmonized AIFMD will highlight alternative investment funds’ ability to deliver safe, stable returns that provide investment diversification and sound risk management for pension funds, endowments, and foundations throughout Europe and around the world.

To view the report, please click here.