Alternative fund manager rules come into force despite delays

Michael Bow
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LONG-AWAITED rules on hedge fund and private equity fund sales finally come into force today – despite scores of managers not being ready for the deadline.

Companies must comply with the Alternative Investment Fund Managers Directive (AIFMD), a set of regulations which enforce tough rules on fund disclosure and governance, in order to market their funds across Europe.

While about eight in ten fund managers have the building blocks in place to comply with the directive, one in four have not still not received authorisation from regulators, according to a poll released yesterday.

The study, from BNY Mellon, found a further 31 per cent still needed to put risk and control systems in place while 38 per cent had not appointed a depository, a key plank of the directive. BNY asked 58 alternative investment firms about the directive.

However, firms only have to apply for AIFMD authorisation today rather than become compliant.