Alternative Funds, Meet Dodd-Frank and the EU Directive
Report Summary
Alternative Funds, Meet Dodd-Frank and the EU Directive
With regard to alternative fund reform, the burden is likely to be as heavy for the regulators as it is for the regulated.
Boston, March 21, 2011 – A new report from Aite Group provides an overview of recently passed regulation affecting the hedge fund and private equity fund businesses in the United States and European Union. The report summarizes key components of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and the EU Directive on Alternative Investment Fund Managers, and discusses the industry impact of both.
At the end of 2010, hedge fund assets had recovered to their peak 2007 levels. The industry continues to gain momentum, particularly due to the new regulation. While alternative funds are scrambling to meet the new regulatory requirements, the burden is likely to be as heavy for the regulators as it is for the regulated.
“At this point, alternative funds, regulators, and all of their counterparties and service providers are implementing the new regulations’ requirements,” says Denise Valentine, senior analyst with Aite Group and author of this report. “There will be adjustments, hiccups, and delays along the way, but the general path has been determined and no one is standing still.”
This 19-page Impact Note contains one figure and three tables. Clients of Aite Group's Institutional Securities & Investments service can download the report.