AIFMs need to revisit and rethink their risk management frameworks and monitoring processes in order to ensure compliance in a post-AIFMD operating environment. Through the process of assisting many AIFMs to prepare for the Directive, KPMG’s professionals are finding clients with immature risk management frameworks, a lack of transparency in many fund structures and outdated systems that, in many cases, will need to be updated or replaced.
- Issues our professionals are finding with other organizations: Immature risk management frameworks and monitoring processes. New systems may be required in order to meet regulatory reporting requirements. There’s a lack of transparency in many fund structures. Also a lack of clarity re: how reporting to the regulator will work in practice.
- How KPMG can help: KPMG’s network of professionals will identify the scope areas (e.g. depositary, risk and liquidity management, remuneration, conflict of interest, valuation, delegation, data management and reporting, technology infrastructure, capital requirements, transparency). The team will then conduct an impact assessment against each area, create an improvement plan by domain/theme to help achieve compliance.
- Potential benefits to clients: robust compliance baseline that is adaptable to future compliance changes.