Spokespeople for seven UK hedge fund managers that have launched new products this year declined to comment on the matter, a possible sign derision towards the legislation remains strong among the community.
The AIFMD comes into force on 22 July this year, and will affect non-Ucits retail schemes, investment and venture capital trusts, charity funds, pension fund pooling schemes, hedge funds and private equity funds.
Initial estimates showed around 30% of European hedge fund managers, managing 90% of European-domiciled hedge fund capital, and just over half of other non-Ucits fund managers would be affected by the legislation.
The Directive includes measures restricting marketing activity relating to retail investors, but this will not apply to new funds until 21 July 2014.
Relief
Beyond the hedge fund industry the Treasury’s announcement has been met with relief.
Annabel Brodie-Smith, communications director at the AIC, said: “We really are welcoming the news because we were concerned it would cause a slowdown in the fund market at a time when there is a lot of demand for new launches.”
Julie Patterson, IMA director of authorised funds and tax, said: “Confirmation that existing European and third country alternative investment fund managers can market new funds during the one-year transitional period, before being authorised under the AIFMD, is great news for firms with pan-European or global businesses.
“The consultation process with the Treasury underlined the Government’s commitment to engage constructively on new legislation, as set out in The UK investment management strategy
“The regulations published today will also help firms to work towards a more manageable timetable for implementation for domestic business.”
Last minute preparation
Research conducted by KNEIP towards the end of last year revealed around 40% of fund managers were unprepared for the new legislation, with time and cost being cited as a significant issue.
European hedge fund managers, meanwhile, held off launching new funds in the opening quarter of the year as they ensure all new funds are AIFMD-compliant. Just 12% of all new funds launched during the quarter were managed by Europe-based managers, a low number given that around 23% of all hedge fund managers are based in the region.
Investment trust managers, on the other hand, have been less reluctant to launch their new products and launches have remained fairly steady in comparison to previous years. A total of five new trusts been launched, three of which are now open to investors and the other two are due to open imminently.
Last year seven new trusts launched, and the total for 2011 was six.
