Sat, Apr 19, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

AIMA to Gauzes: short-selling is a market-wide issue and measures relating to it do not belong in the EU Directive

Thursday, November 26, 2009
Opalesque Industry Updates - “We appreciate the work Jean-Paul Gauzès has put into this report on the AIFM Directive, and we are grateful for his recognition of the importance of alternative investment funds (AIFs) in financing the European economy. We agree with the Rapporteur that the right balance needs to be struck between the vitality and the creativity of this industry and proportionate regulation and supervision.

“There are clearly some helpful proposals in this report. We welcome the emphasis on aligning the Directive with the G20 principles on remuneration policies. We agree with the removal of the threshold for registration and authorisation of AIFMs and fully support moves towards greater transparency on systemic risk issues. We welcome the recognition that national private placement regimes should still apply. And it is right that the Rapporteur should seek the alignment of the AIFM Directive with existing EU financial laws and regulations.

“At the same time, we have some concerns that a number of the measures in this report would negatively impact the vitality of the industry without necessarily delivering a desirable regulatory outcome. We would argue that short-selling is a market-wide issue and measures relating to it do not belong in this Directive. The apparent restriction on funds of hedge funds investing more than 30% in third-country AIFs is concerning. It is very important that clear differentiation is made between products for institutional investors and retail investors; the Directive has hitherto focused on products for institutional investors with products for retail investors remaining under national supervision. The provisions relating to leverage and depositaries appear to lack clarity although we will need time to assess the possible implications.

“Finally, we would note that the substantial revisions proposed to the Directive - both by M. Gauzès but also the Swedish EU Presidency - underline that the original draft of the Directive was deeply flawed. We look forward to continuing our dialogue with policymakers on possible further revisions and enhancements to the Directive in order to achieve a sustainable and workable outcome.”

“We will respond further once we have had the opportunity to examine the report in detail.”

Andrew Baker, Chief Executive Officer, Alternative Investment Management Association (AIMA)

As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has more than 1,100 corporate members worldwide, based in over 40 countries. www.aima.org.


Be

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Opalesque Exclusive: European stock-picking fund up 19% YTD, bets on small caps’ high cash level[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Here is a European long/short equity fund that has been beating the odds since its 2008 inception by employing its own investment model, frequent company visits

  3. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  4. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  5. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A