Bringing you news, views and analysis since 2013

15631

‘Border controls’ imposed by domestic regulators inhibit cross-border fund marketing

RELATED TOPICS​

Domestic regulations in Europe are inhibiting the cross-border benefits of the European Commission’s Alternative Investment Fund Managers Directive (AIFMD), according to analysis by law firm CMS.

CMS has released a passporting guide to help Alternative Investment Fund Managers (AIFMs) navigate the new legislation and understand the complexities of cross-border fund management under AIFMD, other European directives and domestic regulations.
 
AIFMD, which came into force on 22 July 2014, promotes passporting rights as a key benefit for hedge, private equity, real estate and other alternative investment fund managers. In practice, however, AIFMs are experiencing impediments to passporting because some domestic regulators are imposing 'border controls', fees and additional compliance requirements.
 
As an example, some jurisdictions, including the UK, Ireland, France and the Netherlands, do not charge an application fee for outward or inward AIFMD passport notifications, although AIFMs may be subject to periodic regulator fees.  In contrast a number of other jurisdictions, such as Germany, Luxembourg and Finland, charge additional application fees on top of their existing fee structures.
 
Melville Rodrigues, partner and head of the CMS funds group, says: “The diversity of domestic rules across Europe makes it challenging for AIFMD authorised managers to assess the costs and other requirements for penetrating the European market. The managers need to appreciate the cost and compliance of marketing their funds throughout Europe.”

Latest News

Hedge funds posted mixed declines in October, with sharp drops in Technology and AI-related equities..
The UK is poised to become one of the world’s next generation of fintech leaders,..
Universal Investment has announced the acquisition of Cadarn Capital, a fund distribution and investor relations..

Related Articles

European investors continue to the lead the charge for sustainable investing, ploughing USD9.4 billion into funds in the third quarter of 2026...
European investors continue to the lead the charge for sustainable investing, ploughing USD9.4 billion into funds in the third quarter..
Asset managers gave a muted response to the UK Budget from Chancellor of the Exchequer John Healey this week, with one describing it as a “non-event”...
Asset managers gave a muted response to the UK Budget from Chancellor of the Exchequer John Healey this week, with..
It is tough out there for asset managers and it is about to get tougher, according to research from PwC...
It is tough out there for asset managers and it is about to get tougher, according to research from PwC...
Asset managers ever more reliant on artificial intelligence (AI) to support their investment decisions are becoming more vulnerable to weaker data that informs the technology...
Asset managers ever more reliant on artificial intelligence (AI) to support their investment decisions are becoming more vulnerable to weaker..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by