The Alternative Investment Management Association (AIMA), the global representative body for alternative asset managers, has welcomed the European Commission consultation on reducing barriers to the cross-border marketing of investment funds.
AIMA said that barriers to the take-up of the so-called “passport” for investment funds have held back growth in the European economy and hurt savers and investors.
AIMA cited the imposition by many EU jurisdictions of registration and notification fees on funds, which can amount to hundreds of thousands of euros annually for individual firms, as a major obstacle to a better functioning single market for investment funds. These fee costs are often borne by the end investors.
AIMA said another significant barrier has been the requirement by some jurisdictions for investment managers to appoint a local agent or representative in order to market a fund there.