AIFMD Approaches
Much like the Form PF law that was instituted in the United States, the Alternative Investment Fund Managers Directive (AIFMD) was designed to allow regulators a peek into the books of hedge funds and others in order to monitor for systemic risk.
On Monday, we will get more in-depth into some of the IT-related requirements stemming from AIFMD, but after speaking with some vendors who are trying to help their clients prep for this directive, it sounded a lot like when I was speaking to companies in the US prior to their filing for Form PF.
Mainly, there are three things that are most challenging: Data aggregation, data warehousing and data reporting.
At face value, these are very mundane things. But after chatting with numerous hedge funds contacts-and not just technologists, but portfolio managers, CEOs, CFOs and chief investment officers-they were somewhat surprised at how difficult it was to pull all these data sources together. They had to lean heavily on their fund administrators and work closely with third parties. This is something that hedge funds are not used to.
Ultimately, these moves toward transparency are good. They should be embraced. I do wonder, though, how effective this directive can be when you're dealing with all these different countries and markets.
I'm sure as we move forward there will be new issues that will have to be addressed. I also tend to think that while Form PF is here to stay, I have my doubts as to the effectiveness and longevity of AIFMD...but that's just a hunch.
What do you think? Shoot me an email (anthony.malakian@incisivemedia.com) or give me a call (646-490-3973).
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Americans voted against datacenters. Datacenters may still win.
The Waters Wrap: The US midterms could spell trouble for datacenters but only if Dems put the screws to Big Tech, too, Reb writes.
Asia’s T+1 journey splinters as Hong Kong delays and Malaysia mulls
APAC markets are setting their own timelines for shorter settlement, while Deutsche Bank proposes an “earlier certainty” mechanism to ease the cross-border strain.
The SEC’s innovation exemption is facing its first test
Waters Wrap: With more than 20 issuer companies submitting objections to OKX and ICE’s new joint venture for tokenizing stocks, Nyela wonders if some cracks are starting to show in the regulator's innovation exemption.
AI regulation: Who’s responsible for eliminating ‘gray areas’?
The Waters Wrap: In light of the Hugging Face hack and similar incidents involving rogue AI agents, Anthony wonders whether industry regulators will take the reins.
Goldman exec: Dec. 6 a ‘lighthouse’ for EU T+1 readiness
Officials from JP Morgan, the European Central Bank, the National Securities Depository, and Goldman Sachs explained how T+1 preparation needs to be different in the EU than in the US, while speaking at Sibos.
Federal court moves to certify class in Cusip antitrust suit
The SDNY judge has handed a procedural win to plaintiffs, allowing swaths of end-user firms and third-party data vendors to join the class action.
Report once: will Esma’s €1bn reforms deliver the full picture?
Critics say plan to merge three reporting regimes will see scant returns, and won’t mesh with single-sided reporting.
Reasoning agents enter the onboarding process for banks
The next phase for banks in the KYC/AML space will be using agentic AI to replace sequential, siloed checks with orchestrator agents, IBM technologists say.
