The bike ride: Someone’s going to fall off, big-time
We’ve been talking about the impacts of pending restrictions on financial companies for what seems like decades now. And when I say talking, I mean speculating, because none have been implemented yet, so we’re all just guessing at what effects they will have — singularly and in total. But for all the angst they have caused, you have to wonder if some ever will be finalised. Solvency II has been pushed off to 2016, and Basel III will not see the light of day until 2019. If we can keep kicking these down the road, many of the executives in charge of investments when the crisis began will be able to retire before facing restraints on their investment strategies.
But implementation of others, such as the AIFMD, the Alternative Investment Fund Managers Directive, is just around the corner.
The AIFMD is scheduled to go into effect on 1 July 2013. Unlike some of the other regulations, which seek to make financial firms more resilient to market shocks by requiring higher