AIMA launches new Basel III impact survey
12 August 2015 London
Image: Shutterstock
A new survey exploring the impact of Basel III bank capital rules on money managers and their financing relationships has been launched by the Alternative Investment Management Association (AIMA) and S3 Partners.
The, survey, said to be first of its kind, aims to cast light on a complex aspect of the new Basel III rules and is open to all hedge fund managers globally.
The survey will assess how Basel III rules are affecting cost and capacity in the prime brokerage industry.
It will also establish standardised definitions for fundamental concepts such as 鈥榦ptimisation鈥�, 鈥榗ollateral management鈥� and 鈥榬econciliation鈥�, which are key to how hedge fund and asset management clients assess their commercial relationships with banks.
AIMA CEO Jack Inglis said: 鈥淲hile the impact of Basel III on banks may be well understood, it is clear that many hedge fund management firms are struggling to see how these capital requirements will affect the cost of doing businesses.鈥�
鈥淲ith this survey, we are hoping to cut through some of the noise and better understand what managers have seen so far and how they expect their relationships with their prime brokers and other financing counterparties to change.鈥�
S3 Partners CEO Bob Sloan said: 鈥淗edge funds and asset managers should be used to hearing their counterparties speaking about return on assets, optimisation and collateral management, but the surprising thing is that there鈥檚 still no industry-wide understanding of what exactly these concepts mean.鈥�
The results of will be presented in a research paper to be published later this year.
The, survey, said to be first of its kind, aims to cast light on a complex aspect of the new Basel III rules and is open to all hedge fund managers globally.
The survey will assess how Basel III rules are affecting cost and capacity in the prime brokerage industry.
It will also establish standardised definitions for fundamental concepts such as 鈥榦ptimisation鈥�, 鈥榗ollateral management鈥� and 鈥榬econciliation鈥�, which are key to how hedge fund and asset management clients assess their commercial relationships with banks.
AIMA CEO Jack Inglis said: 鈥淲hile the impact of Basel III on banks may be well understood, it is clear that many hedge fund management firms are struggling to see how these capital requirements will affect the cost of doing businesses.鈥�
鈥淲ith this survey, we are hoping to cut through some of the noise and better understand what managers have seen so far and how they expect their relationships with their prime brokers and other financing counterparties to change.鈥�
S3 Partners CEO Bob Sloan said: 鈥淗edge funds and asset managers should be used to hearing their counterparties speaking about return on assets, optimisation and collateral management, but the surprising thing is that there鈥檚 still no industry-wide understanding of what exactly these concepts mean.鈥�
The results of will be presented in a research paper to be published later this year.
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