By Rob Starr, Content Manager, Big4.com
A KPMG International survey released recently, Last Boarding Call: An overview of the alternative industry’s preparedness for AIFMD reveals that among more than 70 AIFMs surveyed, nearly half have not taken any concrete steps to analyze the impacts the AIFMD will have on their businesses or to make changes to their operations despite the looming implementation deadline.
A significant percentage of AIFMs said they have been waiting for the publication of the final implementing measures before beginning their preparations in earnest for the AIFMD. These firms would be well-advised to conduct an in-depth impact analysis of the AIFMD for their business without delay, as the timelines for preparation are short. While the publication of the final implementing measures was delayed by more than 8 months due to high-level political debate in Europe, the 22 July 2013 deadline for compliance remains constant, leaving scant time for in-scope providers to prepare.
The introduction of the Directive also threatens to complicate the fund distribution process in Europe for providers located outside the EU. In fact, non-EU managers of existing alternative investment funds who are out of compliance after the 22 July 2013 will be prevented from raising new capital in the EU. And even if those firms achieve compliance, they will need to submit to a very complicated and extensive reporting process.
While the AIFM directive (Level 1) itself would need to be implemented on an individual basis by each of the EU Member States, the European Commission has been granted powers to adopt the final implementing measures (Level 2) directly into law in all Member States without the need for any national transposition. This swift and sweeping passage of the regulation in all Member States will only serve to compress the already-tight timelines for those firms looking to prepare for the AIFMD.