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IMA: Euro rules could stop multi-manager


New European regulations could render multi-manager type strategies “impossible”, the Investment Management Association has warned.

The trade body has issued concerns in its response to the Alternative Investment Fund Managers Directive by claiming that some of the detailed provisions are out-of-sync and conflict with other regulations that asset managers are required to follow.

IMA director of authorised funds and tax Julie Patterson says: “The provisions on delegation are one example.  They may require the setting-up of additional companies within groups, reduce investor choice in non-EU markets, bring non-EU funds into quarterly reporting to EU regulators and could render ‘multi-manager’ type strategies impossible.”

The IMA says the new regulations would impose additional costs for investors without many benefits.

Although designed to tackle hedge and private equity fund regulation, AIFMD also looks set to cover the likes of Non-ucits retail schemes, investment trusts, VCTs, charity funds and pension fund pooling vehicles.

Patterson says both the directive and regulation take effect from July 2013 giving national regulators almost an impossible deadline to reach.

She says: “This is a disappointing outcome which arises out of a flawed process.  The IMA will now work to help our Members implement the rules in such a way as to minimise disruption and incremental cost.  

“We will also try to ensure that the process for exercises such as these is improved in the future so that we achieve better outcomes.  All parties, including ourselves, need to identify how we can work together to deliver effective and efficient regulation that works in the interests of investors, whilst minimising complexity and cost.”


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