The Alternative Investment Fund Manager's (AIFM) directive could carry more risks for investment managers than they realise, says BDO LLP.

A report by BDO shows that only three per cent of respondents to a survey said the AIFM directive was a key risk for 2010 due to implementation timescales.

In the run up to implementation in 2012, the directive is going to be a 'major' distraction for firms, and analysts are reportedly concerned that the regulations are going to be more stringent on alternative investment fund managers than those in the US and Asia, meaning managers in the EU will be less willing to provide access to European institutional investors.

Neil Fung-On, head of funds at BDO, said: "While the new directive is designed to assist EU passporting of alternative funds - including hedge funds, private equity and real estate funds - it could be deter overseas managers from providing access to funds based in the Cayman Islands and Asia."

The survey also found that two-thirds of firms said their strategy was focused on organic growth over the next 12 months, and over a quarter said they planned to maintain their current financial position. Fewer than three per cent said they planned to contract.

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