With the deadline for the implementation of the Alternative Investment Fund Managers Directive (AIFMD) looming on 22 July, many fund managers could still not be adequately prepared.
A number of alternative investment fund managers have yet to obtain their AIFMD licence and appoint a depositary even though, whether they have their authorisations or not, all will have to comply by the deadline.
Jean Devambez, head of solutions for asset and fund services at BNP Paribas, commented: “Some locations in Europe have the advantage of a strong history of depositary banking for UCITS and other non-alternative investment funds.”
“Others are certainly catching up but the effort to prepare all stakeholders in these locations is necessarily greater. In some locations, Belgium and Italy for example, the directive was transposed only recently, leaving less time for the industry to adapt.”
While the alternative funds industry will not grind to a halt on 22 July, banks such as BNP Paribas have been encouraging and helping clients to be prepared so they can continue their activity with no delays.
Devambez continued: “Managers that submitted their application six to eight weeks ago and are awaiting the processing of their application have already begun complying.”
“Some managers that needed to conduct a step-change to their business models to comply and are just now putting the finishing touches on their applications are likely still in the midst of this step-change in their day to day businesses.”
