Despite the brouhaha surrounding the Alternative Investment Fund Managers Directive (AIFMD) most GPs are confident in complying with the directive using existing capabilities.
In a survey conducted by investment services firm, BNY Mellon, 70 percent of the 52 GPs polled will comply with the AIFMD’s risk and compliance reporting requirements in-house. Fund administrators will take on the reporting duties for 20 percent of the GP respondents.
Additionally, the survey revealed 39 percent of GPs said they are adequately equipped to handle the extra administrative requirements with their existing staff. A further 13 percent said there is no need to add more manpower as they expect there to be “no significant additional work” created by the AIFMD.
This suggests that GPs are seeking to minimize the cost burden of compliance, while at the same time, believing that the in-house department is equipped to fulfil reporting obligations, according to the report.
The survey also polled the expected cost burden of the AIFMD and nearly half (48 percent) of GPs expect the total cost of compliance to be less than $200,000. When taking into consideration all GP responses the mean expected total cost of AIFMD implementation is $300,000.
However, work is not done for all GPs as 81 percent of GPs polled have yet to formally submit their AIFMD applications to local regulators. But only 15 percent are unsure of when they will submit their applications. Most GPs (41 percent) expect to apply before the end of Q1 and a further 20 percent between April and the July 22 deadline.
This research chimes with a recent poll conducted by regulatory service provider Cordium. The poll revealed 92 percent of UK-based fund managers said they expect to be AIFMD authorized by April 22 – three months prior to deadline, and the remaining 8 percent expected to be authorized by July 22.