Uneven progress is being made in implementing the Alternative Investment Fund Managers Directive (AIFMD) across the European Union, according to a joint study by hedge fund industry association the Alternative Investment Management Association (AIMA) and EY, the multinational professional services firm.
The AIMA/EY study found that although a majority of EU member states have either already transposed the AIFMD into law within the transposition deadline of 22 July 2013, or have drafted the final legislation and are awaiting parliamentary approval, only 12 have completed full legislative transposition.
At least five member states are known to have made little or no progress towards drafting or finalising the required legislation.
The AIMA/EY study also found that at least 15 member states are allowing managers more time to comply with the Directive under transitional periods of up to one year from the transposition deadline, although two of those appear to be extending this relief only to their domestic managers.
The findings are part of a wider AIMA/EY survey on the implementation of the AIFMD. Other areas being looked at include the different approaches being taken across the EU to key areas such as private placement rules, reporting timeframes and remuneration requirements. The full results of the survey will be released in September.
Jiri Krol, AIMA’s deputy chief executive, head of government and regulatory affairs, says: “It rarely happens that all member states transpose on time but we are encouraged by the progress that is being made by some of the key asset management and fund jurisdictions in implementing the Directive. That said, there are still significant areas of uncertainty even in those jurisdictions that have transposed the text.”
Julian Young, partner, EMEIA asset management, EY, says: “The Directive is a complex piece of legislation, and we can't under-estimate the task facing member states and national regulators in implementing it within the required timeframe. Even though the number of member states that have already implemented the AIFMD may not look impressive, more progress has been made toward transposition than had been expected. However, it's clear from the survey results that the Directive has not yet achieved the single market for non-UCITS products it was aiming for, and so firms will have to operate across a patchwork quilt of regulatory standards for the next few years at least."