The Alternative Investment Management Association has signalled a new phase of engagement with European policymakers on the European Commission’s draft Directive on Alternative Investment Fund Managers.
Andrew Baker (pictured), chief executive of Aima, says: “There is now a broad consensus among European policymakers that the directive does need a lot of work and that there will be significant revisions. The question of course, is what will replace what is currently in the draft directive. As the global hedge fund industry association, representing not only managers but investors and service providers, we believe we can provide useful technical assistance in this respect.”
The move comes as Aima publishes its position paper on the directive and issues a newsletter for European policymakers.
Aima welcomes the parts of the directive which relate to the G20 process, such as the reporting of systemically relevant data by managers to their national supervisors in the interests of financial stability, and the registration and authorisation of managers.
But Aima has argued that there are other elements of the directive – such as those relating to leverage, depositaries and marketing among others – which have been poorly drafted and which will have many unintended and potentially damaging consequences.
Baker adds: “We think that the directive should focus on the three key issues of registration and authorisation; reporting of systemically relevant data; and a workable passport. If it did so then it would create a progressive framework for the industry within the European Union to operate that addresses the concerns raised about systemic risk issues. We also think it’s important that the policymakers looking at the directive take their time to ensure that it’s properly thought through and are informed by a European-wide impact assessment.”
