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ALTERNATIVE INVESTMENT FUND SALES Between January and June of this year, the TO BE T, S A H IFM DEN highest net AIF inflows "THE AAN INDEPENISED were observed in S RV SEEN ATRAL SUPE IDER." Germany (€50bn), NEU ICE PROV CTOR, Luxembourg and the SERV TE — MANAGINLGUXDEIRMEBOURG T T Netherlands (€16bn NHOU GEMEN JAN VA FUND MANA each), and France VISTRA (€13bn), according to the Voss favours “technical adjustments which relate mainly to a need for stability”. European Fund and Markus Fuchs, managing director of the Swiss Fund Asset Management and Asset Management Association, also counselled cauAssociation, a trade tion: “Harmonisation, in terms of the regulators trying to get all asset management companies to move in the group in Brussels. The same direction, is very dangerous if that direction ends biggest net outflows were up being wrong. The system will collapse. I really hope noted in the UK (-€3bn). we do not see a private equity version of the AIFMD, a real estate version of the AIFMD and so on. I think it’s Across Europe, more than important for it to remain a single regulatory framework €100bn flowed into for all alternative funds.” alternative investment Another problem has been the if the fund is destined for sophistiscale of the task for regulators as cated investors. This move should funds. hundreds of managers adopt the dramatically speed up time-to-marFour European new rules. Even two years after AIFket for new alternative funds. countries ended 2015 MD was introduced, this still remains a problem in Luxembourg, A BREXIT BONANZA? with cumulative net AIF with approval processes often likely Could a “hard Brexit” be revolutionsales greater than €10bn, to take months. ary for the alternative fund industry? EFAMA said. They were According to Jean-Christian Six, a partner at the law firm Allen & STREAMLINING VIA THE RAIF Germany (€124bn), Overy Luxembourg: “The impact The industry worked with the govLuxembourg (€34bn), of Brexit on UK managers will vary ernment to attempt to ease the regIreland (€18bn) and the widely. UK managers focused on the ulatory burden, resulting in the UK domestic market or [who] allaunch of the reserved alternative UK (€13bn). The largest ready have a UCITS management funds (RAIFs) structure in July this cumulative net outflows company or an AIFM in another year. Luxembourg had added an last year were recorded in member state are well-positioned to extra layer of regulation when it weather the storm. However, UK adopted AIFMD, with the fund as France (-€49bn) and managers that either have their well as the manager needing the Spain (-€9bn). The space UCITS [management company] or OK from the regulator. However, as a whole was up AIFM in the UK or are distributing the RAIF is exempt from this extra €152bn across Europe. UK UCITS on a cross-border step if the manager is regulated and December 2016