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BNY Mellon Receives AIFMD Approval From Regulator

Anna Hallissey

17 July 2014

The Financial Conduct Authority has granted BNY Mellon’s request to operate under the Alternative Investment Fund Manager Directive five days before the application deadline comes into place.

The US-based firm has been approved to provide trustee and depositary services to alternative investment funds in the UK, Ireland, Belgium, Germany, the Netherlands and Luxembourg.

"AIFMD has been a major focus for over the past 18 months and we have been leading the way in driving the compliance effort and ensuring that clients are ready for the 22 July deadline,” Peter Craft, head of trustee & depositary services for EMEA at the firm, said.

BNY Mellon plans to onboard most of its 70+ alternative investment fund clients before the deadline, following the advanced establishment of AIFMD- stipulated prime broker agreements at the firm.

Not all firms are so ahead of the game. In an Alceda and Kepler Partners survey released on Tuesday, a week before the AIFMD deadline, just under a fifth of alternative investment fund managers said they planned to submit an application before the 22 July but were yet to do so (see more here).

The survey found that alternative asset managers headquartered outside of Europe have the least understanding of the regulatory requirements at hand. Firms outside of the European Union jurisdiction must adhere to the compliance standards put in place that are by and large stricter than their US counterparts enforced by the Securities and Exchange Commission.