More than a third of fund managers aren’t ready to meet new European rules that require increased disclosure and take effect on July 22, according to a survey.
About 16 percent of the 116 asset managers and fund administration providers who responded said that funds were “very prepared” to meet the Alternative Investment Fund Managers Directive requirements, Confluence, an investment data management company said today.
“European asset managers and fund administrators face big challenges getting up to speed on the full ramifications of the directive and the scope of work it will require of their back-office operations,” Melvin Jayawardana, Confluence’s European markets manager, said in a statement.
The rules, approved by European Union lawmakers in 2010, give the European Securities and Markets Authority powers over a passport system for non-EU hedge-fund managers. The passport would give managers access to investors across the EU with a single registration in return for complying with transparency rules.
More than a quarter of respondents said money managers are still reviewing how to meet the transparency requirement and almost a third said that the greatest challenge will be reporting to local regulators.
The survey was conducted from June 16 to July 1, Confluence said.