The Alternative Investment Management Association says there has been considerable progress on the content of the Alternative Investment Fund Managers Directive following the compromise reached yesterday by EU ministers.
Aima had previously expressed grave reservations about some of the directive’s content. It thought there were many provisions that would have negatively impacted both the alternative asset management industry globally and also European investors.
Andrew Baker, chief executive of Aima, says the text of the directive that has now been agreed by European finance ministers is a considerable improvement not only for its members but in terms of its impact on European investors.
“We do remain very concerned about the potential abolition of private placement regimes at a later date,” says Baker. “Private placement works well and it would be a pity if because of the introduction of the passport, private placement had to go. It is regrettable that this Council agreement does not contain the indefinite continuation of private placement that was agreed in May.
“There is still much in the directive that will be difficult to implement for the industry and there will be a heavy compliance burden that the industry will have to bear. But the impact will be far less severe than if something close to the original proposal had been passed.
“We recognise that this process is not yet complete. We will continue to provide input from the industry in the interests of a constructive and proportionate final outcome.”
To read about the compromise reached by EU ministers click here.
