Far from being something alternative investors of funds should fear, the regulator’s paper, entitled ‘Implementation of the Alternative Investment Fund Managers Directive’, should be welcomed as a further move towards alternative asset classes becoming more mainstream, claims AAA.
The 102-page paper talks about how the FSA might go about enforcing the Fund Managers Directive in the UK. The directive is intended to form a framework for the regulations and assessment of the industry to expose risks and offer investors more information in alternative options.
“It is clear that the reason such as directive is needed is because more and more investments are turning their backs on traditional asset classes and are putting their cash into alternative, such as real estate, commodities, forestry, an even art and antiques,” stated AAA’s analysis partner, Anthony Johnson.
“The stock market is not such an attractive place to make money any more,” he added.
The FSA report states that it is keen to start thinking about implementation at an early stage: ‘There is a great deal to be done. Early communication and timely consultation and planning are crucial for effective and proportionate implementation.’
The report is to be open for responses until 23 March, while the EU members states must give their feedback on the directive by 22 July 2013.
The Investment Management Association’
“There are further EU rules proposed for smaller venture capital funds and social entrepreneurship funds, which will need to be accommodated.”
AAA advocates alternative investments and is particularly interested in promoting ethical investments, such as social ventures and sustainable forestry projects n developing countries. Several firms, including Greenwood Management and Agar Wood Investment offer investors the chance to make an impact on sustainable forestry while seeing healthy returns.
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