With the introduction of the European Commission’s Alternative Investment Fund Managers Directive (“AIFMD”), fund management has undergone the most significant regulatory change in recent times.
From a UK perspective, the vast majority of Unregulated Collective Investment Schemes (“UCIS”) will be Alternative Investment Funds (“AIFs”) under the Directive as will most non-UCITS retail funds (although some will ‘grandfather‘ with minimal changes required).
While smaller fund managers (with assets under management totalling less than €100m and in some cases €500m) will be less affected, the additional operational and regulatory burden for larger managers is significant.
The benefit of AIFMD will particularly be felt by larger (“Full Scope”), pan-European fund managers who will benefit from ‘passporting’ rights to manage and market their funds throughout the EEA.
One sector of the fund management market which is unique to the UK and in which we have considerable experience is that of third party fund Operators who may operate 50+ funds on behalf of number of independent fund or asset managers. This model has particularly been used for institutional real estate funds but with the introduction of AIFMD is undergoing significant change as Operators are dividing between managers and depositaries (and in some cases both).
If you manage or operate a fund or act as a depositary, we can assist you in developing and implementing your strategy, as well as ensuring the company is compliant with the evolving legislation. Please contact STYPERSON POPE‘s Managing Director, Simon Webber, by e-mail or phone to have an initial discussion.