New alternative investment managers seeking to manage or market funds in the EU must meet the AIFMD requirements from today. While existing AIFMs who fall within the scope of the directive have until 22 July, 2014 to follow suit, just 22% of such managers are already compliant, the study shows.
A lack of guidance at the national level appears to be behind the delay, with 40% of affected AIFMs awaiting final regulations and “further advice” from their local regulators before taking action.
‘Wait and see’ for US funds
US managers are less prepared for the AIFMD than their European counterparts, with just 51% of respondents seeking to market their funds in the EU already compliant or likely to comply by July next year. In contrast, 64% of European managers say they will meet the requirements in time.
“The phased compliance period for non-EU managers means that a number of North American funds are choosing to wait and see the initial impact of the regulations in Europe before altering their processes,” noted Amy Bensted, head of hedge fund products at Preqin.
Smaller managers least ready
Large hedge fund managers are better prepared than smaller firms. Two-thirds of respondents with assets under management of more than $1bn (€760m) expect to comply with the AIFMD before the 2014 deadline, compared with just 31% and 54% respectively in the $500m-$999m and $100m-$499m segments.
Preqin’s findings are in-line with a similar survey by service provider KNEIP, which found that just 15% of respondents were ready to meet the new rules.