Fund Managers Still Have Concerns on AIFMD, Northern Trust Survey Finds
LONDON -- March 26, 2013
A survey conducted among approximately 130 Northern Trust (Nasdaq: NTRS) fund
manager clients, prospective clients and consultants attending a recent
seminar on the European Union’s Alternative Investment Fund Manager Directive
(AIFMD) found that while 86 percent of attendees broadly understood the
implications of the directive, close to 70 percent felt their investors were
not engaged in AIFMD considerations.
“The AIFMD will ultimately affect every fund manager and their investors in
Europe,” said Ian Headon, head of product development, Northern Trust Hedge
Fund Services. “Across the industry, fund managers, fund advisors, custodians
and administrators have been monitoring the development of AIFMD and doing
research and development work to prepare, however with the majority of
attendees at our event citing their AIFMD implementation projects are in the
preliminary stages and feeling that their investors are not engaged, there is
still more work to be done and more clarity around the directive required.”
The primary benefit of the AIFMD for asset managers is the creation of a
pan-European passporting regime, making distribution easier. In order to
secure the Passport, managers (AIFMs) and funds (AIFs) must comply with new
regulations – in the areas of depositaries, operations and transparency, and
Despite the distribution opportunities AIFMD will provide, 64 percent of the
attendees at Northern Trust’s AIFMD seminar saw the directive as primarily a
compliance and cost overhead, while close to a third felt it was creating
uncertainty and challenges for their business. Less than 10 percent believed
it was a strategically important opportunity for their business. Additionally,
in the experience of those attending the seminar, only around 10 percent of
investors were demanding a fully compliant AIFMD fund product.
“We understand the increasing challenges our clients face in implementing not
just AIFMD, but other regulations affecting their business and underlying
investors,” said Toby Glaysher, head of Global Fund Services for Europe,
Middle East and Africa at Northern Trust. “To help them better navigate these
challenges, we have launched a dedicated programme of workshops and provide
regular updates from our experts on the latest regulatory developments.”
Northern Trust’s Global Fund Services business provides custody, fund
administration, investment operations outsourcing, and ETF solutions to
investment managers across the globe and across the spectrum of asset classes.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment
management, asset and fund administration, banking solutions and fiduciary
services for corporations, institutions and affluent individuals worldwide.
Northern Trust, a financial holding company based in Chicago, has offices in
18 U.S. states and 16 international locations in North America, Europe, the
Middle East and the Asia-Pacific region. As of December 31, 2012, Northern
Trust had assets under custody of US$4.8 trillion, and assets under investment
management of US$758.9 billion. For more than 120 years, Northern Trust has
earned distinction as an industry leader in combining exceptional service and
expertise with innovative products and technology. For more information, visit
www.northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago,
Illinois 60603 U.S.A, incorporated with limited liability in the U.S.
The Northern Trust Company, London Branch (reg. no. BR001960), Northern Trust
Global Investments Limited (reg. no. 03929218) and Northern Trust Global
Services Limited (reg. no. 04795756) are authorised and regulated by the
Financial Services Authority. Northern Trust (Guernsey) Limited, Northern
Trust Fiduciary Services (Guernsey) Limited, and Northern Trust International
Fund Administration Services (Guernsey) Limited are licensed by the Guernsey
Financial Services Commission. Northern Trust International Fund
Administrators (Jersey) Limited and Northern Trust Fiduciary Services (Jersey)
Limited are regulated by the Jersey Financial Services Commission. Northern
Trust International Fund Administration Services (Ireland) Limited, Northern
Trust Securities Services (Ireland) Limited and Northern Trust Fiduciary
Services (Ireland) Limited are regulated by the Central Bank of Ireland.
Northern Trust Global Services Limited has a Netherlands Branch which is
authorised and regulated in the Netherlands by De Nederlandsche Bank. Northern
Trust Global Services Limited has a Luxembourg Branch which is authorised and
regulated by the Commission de Surveillance du Secteur Financier (CSSF).
Northern Trust Luxembourg Management Company S.A. is regulated by the
Commission de Surveillance du Secteur Financier (CSSF). Northern Trust Global
Services Limited operates in Abu Dhabi as a Representative Office, Licence
number 13/238/2008 which is authorised and regulated by the Central Bank of
the United Arab Emirates. The Northern Trust Company operates in Canada as The
Northern Trust Company, Canada Branch which is an authorized foreign bank
branch under the Bank Act (Canada). Trustee related services in Canada are
provided by the wholly owned subsidiary The Northern Trust Company, Canada, an
authorized trust company under the Trust & Loans Companies Act (Canada).
Deposits with The Northern Trust Company and its affiliates and subsidiaries
are not insured by the Canada Deposit Insurance Corporation. Northern Trust
operates in Australia as a foreign authorised deposit-taking institution
(foreign ADI) and is regulated by the Australian Prudential Regulation
Authority and the Australian Securities & Investments Commission (AFS Licence
No: 314970). The Northern Trust Company of Hong Kong Limited is regulated by
the Hong Kong Securities and Futures Commission. The Northern Trust Company
has a Singapore Branch which is a foreign wholesale bank regulated by the
Monetary Authority of Singapore. The Northern Trust Company has a branch in
China regulated by the China Banking Regulatory Commission. Northern Trust
Global Investments Japan, K.K. is regulated by the Japan Financial Services
Agency. Northern Trust Global Services Ltd (UK) Sweden Filial is authorised by
the Financial Services Authority and subject to regulation by the
Finansinspektionen. Northern Trust Global Investments Limited has a
Netherlands branch which is authorised by the Financial Services Authority and
subject to regulation in The Netherlands by the Autoriteit Financiële Markten.
Northern Trust Global Investments Limited has a Sweden branch which is
authorised by the Financial Services Authority and subject to regulation in
Sweden by the Finansinspektionen.
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