Much of the attention has been focused on regulation of hedge funds and private equity but Martin Currie head of product development Toby Hogbin warns property funds are likely to come under the regulations.
He says: “The directive catches all non-Ucits funds managed by an EU-based manager, whether they are real estate, traditional or alternative investments. For example, all funds investing directly in property will be implicated by the proposals.”
Investment Management Association chief executive Richard Saunders says: “The alternative investment fund managers directive has been characterised as introducing regulation of hedge funds and private equity. But it goes much wider than that, covering all non-Ucits funds in the EU, whether retail or institutional. That includes UK unit trusts not covered by the Ucits directive, closed-end funds, potentially some pooled pension vehicles and many others.”