New Alternative Investment Fund Managers Directive (AIFMD) comes into force today
LONDON, July 22, 2013 — BNY Mellon, the global leader in investment management and investment services, has announced that it is 'AIFMD-ready' and able to provide full depositary services to asset managers impacted by the new Alternative Investment Fund Managers Directive (AIFMD), which comes into force today.
AIFMD will impact non-UCITS funds, with implications for managers both inside and outside of the EU (dependent on their distribution of funds within the EU). The Directive seeks to harmonise and make compulsory the regulation of Alternative Investment Fund Managers (AIFM) based within the EU or who sell their products to EU investors. The AIFMD aims to create greater transparency and investor protection by aligning the management and safekeeping of Alternative Investment Fund (AIF) assets to the rules governing UCITS (Undertakings for Collective Investment in Transferable Securities) funds. Early applicants will be able to leverage the AIFMD passport opportunities for cross-border European distribution.
"Over the last 18 months we have invested strongly in our European infrastructure and personnel so that we are ready to support those clients who become authorized early under the Directive," noted Hani Kablawi, EMEA Head of BNY Mellon's Asset Servicing business. "Whilst the new regulation has added a greater level of complexity to our work as a depositary to Alternative Investment Funds, the solutions that we have in place will allow our clients to continue to operate efficiently and cost effectively within the new environment."
"There is no doubt AIFMD represents a significant change for the funds industry across Europe and beyond," added Peter Craft, BNY Mellon's EMEA Head of Trustee and Depositary Services. "It transforms our duties and introduces significant new liabilities. We are leveraging the strength of our team across Europe to ensure we are ready to support managers in this pressurized operating environment."
BNY Mellon's Asset Servicing business supports institutional investors in today's fast-evolving markets, safeguarding assets and enhancing the management and administration of client investments through services that process, monitor and measure data from around the world. We leverage our global footprint and local expertise to deliver insight and solutions across every stage of the investment lifecycle.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2013, BNY Mellon had $26.2 trillion in assets under custody and/or administration, and $1.4 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on http://www.bnymellon.com/, or follow us on Twitter @BNYMellon.
This press release is issued by The Bank of New York Mellon to members of the financial press and media. All information and figures source BNY Mellon unless otherwise stated as at June 30, 2013. The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818. Branch office: One Canada Square, London E14 5AL. Supervised and regulated by the New York State Department of Financial Services and the Federal Reserve. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.