“AIFMD requires fund managers to comply with a new and extensive set of regulations that affect transparency, the conduct of business, remuneration, leverage and reporting.” Paul Nunan, managing director of Capita’s fund solution business in Ireland, said, “When it was introduced, many U.S. managers believed its cost, complexity and requirements would prove to be a bridge too far, but necessity is the mother of invention. Capita provides a ready-made solution for non-EU managers who desire access to European investors without the hurdles associated with developing an in-house solution.”
The licence authorises Capita to take regulatory responsibility for the funds to which it acts as AIFM. Capita will provide independent AIFM services US fund managers, so they are compliant with the Alternative Investment Fund Managers Directive (AIFMD).
AIFMD is an EU directive that came into force on 22 July 2013. It regulates EU and non-EU fund managers that market alternative investment funds to investors domiciled, or with a registered office in the EU.
“This allows fund managers to focus on managing their funds, while ensuring that aspects like governance and reporting are handled by specialists.” Nunan said. “As managers do not need to apply for a separate licence their products will get to market faster and benefit from the economies of scale. They will also be able to choose to use their own service providers (subject to appropriate due diligence) or use Capita’s fund solutions business and existing relationships.”
“With common culture, language, relative proximity, existing relationships and embedded local expertise, Ireland is an extremely compelling entry point for U.S. hedge funds to access the EU market.”