Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
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   |   
Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1