A survey from BNY Mellon shows almost half of respondents believe the cost to comply with the incoming UCITS V regulation will be more than for the Alternative Investment Fund Management Directive (AIFMD).
The poll, conducted out of 250 delegates at BNY Mellon’s Tax and Regulatory Forum, found 43% believed UCITS V will be more costly than AIFMD, while 29% said it would be more or less the same.
As the case with AIFMD, respondents were concerned about the proposed timing of UCITS V and other regulatory changes, and the potential for another bottleneck around compliance and approvals to materialize in the first quarter of 2016.
“There seems to be a consensus that the next two years will be the most demanding in terms of tax and regulatory work and costs,” says Paul North, head of product, Europe, Middle East and Asia, BNY Mellon.
As well as UCITS V, asset managers will also have to prepare for the Foreign Account Tax Compliance Act (FATCA) and the Financial Transaction Tax (FTT).
Overall, 71% of delegates expect to see higher costs in the 2015 compared with 2014.
“The global trend towards tax transparency is at the heart of regulatory reform… These initiatives are adding significant compliance costs for financial institutions,” adds Mariano Giralt, head of EMEA tax services, BNY Mellon.
UCITS V Compliance More Costly Than AIFMD, BNY Mellon Survey
A survey from BNY Mellon shows almost half of respondents believe the cost to comply with the incoming UCITS V regulation will be more than for the Alternative Investment Fund Management Directive (AIFMD).