25.07.2014
Only 16% of fund managers believe AIFMD regulations have a positive impact
A significant 47% of real assets fund managers believe the Directive will have a negative impact on the industry, and 37% believe it will have no noticeable impact
Only a small proportion of fund managers active in infrastructure and real estate think that AIFMD regulations will have a positive impact on their firm and industry, following a recent survey of over 140 managers active in the asset classes.
Nevertheless, almost half (49%) of infrastructure managers and 34% of real estate managers worldwide indicated to Preqin in June 2014 that they would be compliant by the AIFMD’s July 2014 deadline.
Other AIFMD Key Facts:
- 36% of real estate fund managers believe regulation in general is having a negative impact on their industry, compared to 16% of infrastructure managers.
- Almost two-thirds (63%) of infrastructure managers felt the AIFMD will have a negative impact on the industry, with 41% of real estate managers feeling the same way.
- A greater proportion of real estate managers will not market within the EU. 38% of real estate managers indicated they will not market their funds in the region, compared to 26% of infrastructure managers. This may present opportunities for other managers to secure capital from investors based in the EU, with over 2,000 European institutional investors investing in real estate or infrastructure.
JOBS Act Key Facts:
- A notable proportion of real estate managers, 30%, believe the JOBS Act is having a positive impact on their firm and industry, although only 1% of managers surveyed have registered and will market under the Act.
- 18% of infrastructure managers believe the JOBS Act is having a positive impact, with 8% of respondents either already registered or planning on registering under the Act.
- Over 70% of both infrastructure and real estate fund managers either will not market their funds under the JOBS Act, or do not plan to at the moment.
- Increased scrutiny from the SEC was named by the greatest number of real estate managers (18%) as the main reason preventing them marketing under the JOBS Act.
“The recent implementation of various regulations on the alternative investment industry has received mixed reviews from fund managers, with many wary of the additional costs and administrative requirements associated with compliance. In particular, fund managers appear to have a negative outlook on the AIFMD, with many unhappy with the additional cost and administrative burden required in order to be compliant and to continue marketing their funds within the EU.
Regarding the JOBS Act, although this allows managers to market to a broader audience through registration under section 506©, very few intend to follow this route in the short term, with many firms concerned about increased scrutiny of regulators and the additional costs that advertising would bring, as well as the potential negative perception of wider marketing. Only time will tell whether managers will adapt to and take advantage of the new opportunities created by the JOBS Act.” - Andrew Moylan, Head of Real Assets Products
http://www.iss-mag.com/regulations-and-compliance/only-16-percent-of-fund-managers-believe-aifmd-
Only a small proportion of fund managers active in infrastructure and real estate think that AIFMD regulations will have a positive impact on their firm and industry, following a recent survey of over 140 managers active in the asset classes.
Nevertheless, almost half (49%) of infrastructure managers and 34% of real estate managers worldwide indicated to Preqin in June 2014 that they would be compliant by the AIFMD’s July 2014 deadline.
Other AIFMD Key Facts:
- 36% of real estate fund managers believe regulation in general is having a negative impact on their industry, compared to 16% of infrastructure managers.
- Almost two-thirds (63%) of infrastructure managers felt the AIFMD will have a negative impact on the industry, with 41% of real estate managers feeling the same way.
- A greater proportion of real estate managers will not market within the EU. 38% of real estate managers indicated they will not market their funds in the region, compared to 26% of infrastructure managers. This may present opportunities for other managers to secure capital from investors based in the EU, with over 2,000 European institutional investors investing in real estate or infrastructure.
JOBS Act Key Facts:
- A notable proportion of real estate managers, 30%, believe the JOBS Act is having a positive impact on their firm and industry, although only 1% of managers surveyed have registered and will market under the Act.
- 18% of infrastructure managers believe the JOBS Act is having a positive impact, with 8% of respondents either already registered or planning on registering under the Act.
- Over 70% of both infrastructure and real estate fund managers either will not market their funds under the JOBS Act, or do not plan to at the moment.
- Increased scrutiny from the SEC was named by the greatest number of real estate managers (18%) as the main reason preventing them marketing under the JOBS Act.
“The recent implementation of various regulations on the alternative investment industry has received mixed reviews from fund managers, with many wary of the additional costs and administrative requirements associated with compliance. In particular, fund managers appear to have a negative outlook on the AIFMD, with many unhappy with the additional cost and administrative burden required in order to be compliant and to continue marketing their funds within the EU.
Regarding the JOBS Act, although this allows managers to market to a broader audience through registration under section 506©, very few intend to follow this route in the short term, with many firms concerned about increased scrutiny of regulators and the additional costs that advertising would bring, as well as the potential negative perception of wider marketing. Only time will tell whether managers will adapt to and take advantage of the new opportunities created by the JOBS Act.” - Andrew Moylan, Head of Real Assets Products
http://www.iss-mag.com/regulations-and-compliance/only-16-percent-of-fund-managers-believe-aifmd-
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