According to a study by State Street Corporation, over a third of alternative fund managers hold increased regulatory scrutiny accountable for the recent changes in their industry.
State Street conducted the study in Europe, Asia and North America among almost 400 hedge, real estate and private equity fund managers. 38% of those asked believed that the major challenge for their business was adapting to regulation.
More than half of the respondents in Europe thought the remuneration provisions of AIFMD were harmful. Nearly two-thirds of managers in the US thought certain provisions of Dodd-Frank were having negative impacts on their business. FATCA was the leading concern among Asia respondents.
Private Equity Managers were the least concerned among the three asset classes with 27% rating the regulation as a challenge, compared to 40% of real estate managers and 41% of hedge fund managers. The study revealed that those who felt most affected by regulatory change were Europe.