Facing the challenges
Franco Brunello, chief executive officer of Milan-based Unifortune Asset Management S.p.a SGR, is relaxed about the AIFMD and its relevance to his company. He attributes this to the fact that existing Italian regulations on domestic AIFMs already meet most of the requirements of the new directive.
“We expect an increase in operating costs by reviewing the organisational structure and the remuneration/conflict of interest policy in accordance with the Compliance function, the impact of the professional indemnity insurance and additional costs related to deeper stress test and back testing carried out by the risk management function.”
Asked to explain briefly how Unifortune plan to meet the challenges posed by AIFMD, in particular whether the firm expects to outsource further elements of its operational requirements to a specialist service provider, he replied that Unifortune, as a general rule, plans to develop internally most of the operational requirements, outsourcing the minimum to a service provider.
The directive will of course affect Unifortune's business model. “With the benefit of the European passport our distribution model will finally cross domestic borders towards European institutions with whom we have had relationship in the past,” he observes. Other than that, however, he says he does not expect any immediate or long-lasting benefits to Unifortune's business. The patent of AIFMD will, however, deliver a competitive business advantage in the future for European AIFMs compared to offshore AIFMs and possibly also to US AIFMs.
“The patent of AIFMD will deliver a competitive business advantage in the future for European AIFMs compared to offshore AIFMs and possibly also to US AIFMs.”
The sooner compliance is achieved, the better, he concludes.
Unifortune Asset Management SGR SpA, one of the first SGRs, is a private and independent company, certified by Bank of Italy, operating under Italian law. The company manages investment funds, traditional and alternative, and portfolio service management. The board is focused on offering strong experience, and independence in the management of major assets of private and institutional clients.
Franco Brunello is the CEO of Unifortune and in charge of single-manager funds and asset management. He started his career at Continental Bank of Chicago and has 25 years of experience in banking, investment banking, asset management and hedge funds.