French Hedge Funds Say AIFMD Is A Success, But Regulator Warns Financial Stability Board’s Involvement In Regulations May Result In New Concerns
Paris, French hedge funds and the securities regulator AMF believe the Alternative Investment Fund Managers Directive (AIFMD) will – more than UCITS – boost investor confidence in hedge funds and pave the way for potentially significant asset growth. But further steps are required to fully gain back the trust from institutions.
Participants at Opalesque’s third France Roundtable, held in April 2012 in Paris and sponsored by Lyxor Asset Management and Eurex, believe the AIFMD will have a major impact on the hedge fund industry in Europe. Some of the largest funds of funds, like Amundi Alternative Investments, have already shifted their model from offshore to a 100% onshore, European regulated framework. This includes a re-domiciliation of most wrappers (i.e. the funds of hedge funds themselves) as well as their underlying fund structures to onshore jurisdictions. Amundi says the firm is already now fully ready for the arrival of the AIFMD, and explains that this shift was mainly motivated by concerns from their French institutional clients.
The Opalesque Roundtable Series highlights fundamental developments within the global hedge fund industry, a full archive with over 70 Roundtable scripts can be accessed here: http://www.opalesque.com/Archive-Roundtable.html.
Patrice Bergé-Vincent, head of the Asset Management Regulation Division at French securities regulator AMF, pointed out that over the next years the industry will come to a clearer distinction between UCITS and AIFM. UCITS products will be more directed to retail investors and AIFs will be reserved for the most sophisticated investors. However, he warned that the increased focus and activities of the Financial Stability Board (FSB) around market regulations may soon turn into a new regulatory paradigm that could be a “new concern for the asset management industry going forward.”
The Opalesque Roundtable Series highlights within the global hedge fund industry, a full archive with over 70 Roundtable scripts can be accessed here: http://www.opalesque.com/Archive-Roundtable.html.
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