Four in ten alternative asset managers in the UK who took part in an Intertrust survey say that they are under pressure to review their investment structures and, if needs be, to strengthen them in order to comply with the Organisation for Economic Co-ordination and Development's Base Erosion and Profit-Shifting (BEPS) initiative.

BEPS refers to tax avoidance strategies that exploit gaps and mismatches between different countries' tax rules to shift profits artificially to low-tax or zero-tax locations. During "OECD Week" this month, 76 countries and jurisdictions signed, or formally expressed their intention to sign, an innovative multilateral BEPS convention. This will update the existing network of bilateral tax treaties.

In an attempt to comply with the OECD's wishes, which have been enshrined in the law of the European Union, 30% of managers are also reviewing their accounting systems, 30% are reviewing their management structures, 29% are reviewing their financing structures, 34% are reviewing their REIT-type structures and 14% are reviewing their underwriting and valuation models.

Common Reporting Standards (CRS) were also highlighted as a concern in the Intertrust report, which surveyed more than 70 alternative investors. 62% of managers said that their organisations were either restructuring their existing information-reporting operations to comply with the CRS, or were recognising the need for more consistent governance, technologies and processes. Only 11% thought that they did not need to make any changes at the moment.

The survey revealed the extent to which regulatory change or review is pushing alternative asset managers towards a more defensive approach to life. 60% of the managers in the survey anticipated the need to invest more resources in their businesses by way of procedures, personnel or systems in order to continue to meet all regulatory obligations. Regulatory requirements, they believe, are increasing across the board.

Paul Lawrence, the global head of funds at Intertrust, believes that the results of his survey show that investors are having to review their own structures and, in many cases, are having to reform them. He also thinks that regulatory 'pressure' is making investors seek low volatility asset classes that provide a strong yield and, in many cases such as real estate, a refuge for capital preservation.