Bringing you live news and features since 2006 

Efama welcomes end to uncertainty for non-Ucits fund managers


The European Fund and Asset Management Association says it welcomes the end to the uncertainty that has faced fund managers of all non-Ucits investment funds since the European Commission’s initial proposals for legislation in April 2009, following the approval of the Alternative Investment Fund Managers Directive by the European Parliament.

Efama says the Directive has been erroneously labelled as a hedge fund directive, whereas in reality it also covers real estate funds, investment trusts and non-Ucits retail funds along with many other kinds of nationally regulated investment funds.
The association believes the result of 18 months of negotiations is in many ways a sensible compromise, considering the starting point for negotiations. It remains a very complex piece of legislation which regulators and the industry have to now put into practice. An extensive amount of Level 2 work will follow in the next 12 months.

Efama says it is important that a pragmatic approach is taken, minimising the need for unnecessary restructuring to an industry which is already well regulated at a national level. Ultimately additional costs imposed on investment funds will negatively impact investor returns, which may drive investors to more lightly regulated products with weaker investor protection.

Also very important will be to ensure an adequate transitional period for existing national private placement regimes in the run-up to a European passporting regime for non-EU managers and funds.
Peter De Proft, director general of Efama, says: “It is to be welcomed that a year and a half’s uncertainty about the regulation of all non-Ucits managers and their products is now over and we can move forward. I congratulate both the European Parliament and the Belgian Presidency for their relentless efforts to finalise these negotiations.
“It has to be recognised that the process involved with the AIFMD was unprecedented for the investment management industry. Revisions of the successful Ucits regime followed careful consideration, impact assessment and consultation. These principles of better regulation were ignored regarding the AIFMD and therefore the end result is far from optimal. We sincerely hope that this will prove to be an exception and not the rule for future revisions of EU investment management regulation.”

Latest News

REX Shares has announced a strategic reorganisation that integrates its REX Shares, MicroSectors, and T-REX products, as well as REX..
Allspring Global Investments writes that as it builds an investment platform for the future, it has filed for exemptive relief..
LSEG Lipper writes that ETF promoters in Europe enjoyed estimated net inflows (+EUR25.1 billion) for May 2024...
The European Fund and Asset Management Association (EFAMA) has published its 2024 industry Fact Book, which includes a foreword by..

Related Articles

Marcus Wayerer, Franklin Templeton
Franklin Templeton says that emerging markets are navigating a tricky environment at the moment, due to factors such as the...
Matt Barry, Touchstone Investments
Back in 2022, Cincinnati, Ohio-based Touchstone Investments launched its first four ETFs, having previously been predominantly a mutual fund company....
CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Jordan, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Subscribe to the ETF Express newsletter

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

Marketing by