Shake-out feared over AIFMD reform proposals

Proposed reforms under the Alternative Investment Funds Management Directive that would see custodians held liable for asset losses could drive a wave of consolidation and alter the way the industry operates forever. Under AIFMD, which governs all non-Ucits funds and must be implemented across EU states by July 2013, alternative investment managers must appoint a depository for each fund they manage. But clearly the repercussions of imposing liability on custodians for loss of a…