A total 54% of those taking part in a survey conducted by BNY Mellon said they believed funds would become more accessible to the end user as a result of the AIFMD, and they supposed investors will be the key benefactors of the legislation.
This is seen to be the most positive outcome of the much-maligned legislation, however. Investors are expected to be hit with reduced choice as fund managers struggle with the cost and complexity of compliance with the legislation while 67% believe the AIFMD will result in the number of alternative funds decreasing.
Just 18% of participants believe their organisation will benefit, as one-off costs for implementing the legislation are estimated to be between $300,000 and $1 million per institution.
A further 39% believe their organisation will close some funds, move them outside of the EU or merge funds together.
Regulatory reporting is deemed to have the greatest time and cost implications, followed by risk and compliance reporting. Respondents remain uncertain about the cost of depository services and 88% believe the cost of funds will increase as a result of the legislation.
A few weeks ago we explored why so many fund managers remained unprepared for the directive being passed into law. Find out more here.
