TheINsiders reports: asian appetite for AIFMD structures is growing

TheINsiders reports: Asian appetite for AIFMD structures is growing

The consequences of AIFMD implementation are being discussed around the globe. Baker & McKenzie (Luxembourg) flew into action in Singapore, in front of an audience of Asset Managers and Investors to confirm exactly why Luxembourg is the venue of choice for non- European managers.

The final version of the AIFMD (Alternative Investment Fund Managers Directive) and its Level II implementation measures has been unveiled, the deadline confirmed and Asian Fund managers are concerned. Amidst the changes to be implemented by the introduction of the AIFMD on 22 July 2013, there are many hard-to-answer questions regarding delegation, remuneration and distribution.

Sandrine Leclercq, Counsel, is a regular speaker in Asia on funds. She reported after her recent time in Singapore, “Fund managers are actively discussing the impact of the AIFMD and the absolute minimum actions that need to be taken by them in the short term in order to preserve their existing distribution models. Our clients are expressing concerns on the transparency requirements and remuneration policies and on the factors influencing choice of domicile. Some participants questioned if Cayman is losing its appeal and being replaced by Luxembourg as a possible place for hosting AIFs in the future thus taking full benefit of the passport opportunities.”

Baker & McKenzie are one of the elite global firms with offices in both jurisdictions and therefore able to provide a two-way bridge putting Luxembourg on the map in the minds of Asian asset managers, reminding them of the Grand Duchy’s credibility and reputation as a long-established centre for fund administration.

Further interest was expressed on the effective opportunities offered by the product passport in particular; questions ranged from how this can be achieved practically to what business model works optimally, in particular for managers who already have a presence in Europe or those who would like to benefit as soon as possible from the wider distribution opportunities.

Clement Benelli, a non-exec director of UBI Capital, said, “It is useful to have a Luxembourg-based firm provide insights into the unfolding AIFMD, which alongside FATCA are the two most pressing issues for the fund community in Singapore.”

“Asian fund managers, many of whom are already experienced in the technicalities of UCITS Funds are exploring the possibilities offered within AIFMD,” commented Christopher Bennett, Head of Real Estate of DCG. “There can be no question that the relationship and synergies between Singapore and Luxembourg can only grow in importance.”


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