Adapting EU cross-border fund governance models for Covid-19

The Covid-19 crisis will impact the European fund industry in a number of ways. There may well be significant structural change to it as a result of the pandemic. The industry’s governance models are very likely to be part of this.

Should managers focus to a greater degree than they done to date on their core activities in future? If so, should they be outsourcing more functions to specialist third party providers of those services? And does it still make sense for many of these managers to have their own management company or AIFM in Dublin and Luxembourg? Covid-19 comes on top of an ever-heavier regulatory and reporting burden faced by managers in international fund jurisdictions, as well as increasing demands for more local substance.

We are only a few months into the pandemic and forecasting what the world will look in the years ahead should therefore be done with caution. Nonetheless, it appears to be very likely that air travel will be more difficult for some time to come. Jumping on and off a plane at short notice might not return for years.

To read more on the story see the June issue of The NED.