Asset managers still not ready for EU directive

City A.M. Reporter
THE UK’s asset management industry is still not ready for the introduction of the Alternative Investment Fund Managers Directive (AIFMD) a poll from PricewaterhouseCoopers (PwC) revealed yesterday.

The poll suggests only two per cent of asset managers have a plan in place for responding to the AIFMD despite 41 per cent of them believing management fees will increase and half expecting profitability will be cut.

The poll of 186 senior industry figures from the hedge fund, private equity and real estate sectors shows only 16 per cent have set up a dedicated working group to consider the implications and formulate how they should respond.

The aim of the directive is to put hedge funds and private equity funds under the supervision of an EU wide regulator in order to improve transparency in the financial markets.

James Greig, partner at PwC legal, said the asset management industry’s lack of planning was “surprising”.