The AIFMD could gobble up alternative UCITS
Mon May 21, 2012
By July 2013 European Union member states will need to transpose the Alternative Investment Fund Managers Directive into their national law. Joy Dunbar, editor of Absolute UCITS, looks at the likely impact upon the alternative UCITS sector.
The growth of hedging strategies using the UCITS wrapper was an immediate response to the global financial crisis of 2008.
The response from the global financial leaders and central bankers who make up the G20 was that there is a need to secure a stable financial system and that all significant financial firms are subject to appropriate regulation and supervision.
The development of Alternative Investment Fund Managers Directive, or AIFMD, was borne out of this desire in Europe. EU Member States will need to transpose the directive into their national law by July 2013 and its objective is to create framework for the supervision and prudential oversight of AIFMs in the EU.
The AIFMD was a key part of the EU’s response to the global financial crisis in 2008, according to Zeynep Meric-Smith, AIFMD leader for asset management for London-based E&Y.
She says: “The Directive was an attempt to create...
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