Twenty fund managers in Europe have warned Michel Barnier, European Union (EU) Commissioner, against the introduction of the Alternative Investment Fund Managers Directive (AIFMD) in its present form. Consequently, the AIFMD due to come into force on 22 July 2013 will now be introduced in September 2012.
Fund Managers believe that AIFDM expected to overhaul the pan-European regulatory regime will have unintended damaging effects like increasing costs for investors. This is because the draft comprised added rules making it illegal for parent investment companies to delegate work to staff in other countries, regardless of whether they are EU members or not. Resultantly, a firm will have to base either its investment or compliance teams out of their home office.