Wed, Sep 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

AIMA warns of protectionist provision in AIFM directive

Tuesday, February 16, 2010
Opalesque Industry Update - The Alternative Investment Management Association (AIMA) – the global hedge fund industry association – has warned that a provision of the Alternative Investment Fund Managers (AIFM) Directive that is currently being debated in Brussels is protectionist.

AIMA’s expression of concern comes after the publication of the most recent AIFM Directive compromise text by the current Presidency of the European Council, Spain. The new text is being debated by the AIFMD Council Working Group in Brussels this month.

The Spanish text reinstates a provision from the original draft that may result in EU investors such as pension funds being prevented from accessing non-EU funds and managers. The provision – Article 35 - had been removed from the Directive by the previous Presidency, Sweden.

Under Article 35, non-EU based managers would only be able to market funds within the EU if there were co-operation arrangements in place between the regulator of the manager’s jurisdiction and that of the EU Member State in which the investors are located.

Andrew Baker, Chief Executive Officer of AIMA, said, “Stipulating that these co-operation arrangements must be in place sounds reasonable enough but we are worried that they would be difficult to establish and to comply with. The practical consequence would be that the E.U. market would be closed to non-E.U. funds and managers with obvious protectionist implications.

“European institutional investors are currently free to seek out the best managers globally. Any restrictions imposed on European investors would also hit asset managers in financial centres such as the United States, Canada, Switzerland, Hong Kong, Singapore, Japan, Australia and South Africa.

“With the Council Working Group debating the Spanish compromise text this month, this represents a critical moment in the process. We hope all parties concerned reflect on the global consequences of this provision and reach a sensible and workable solution.” Corporate website: www.AIMA.org

- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Outlook - Julian Robertson: There are two bubbles that can bite us[more]

    From Businessinsider.com: Legendary hedge fund manager Julian Robertson gave a warning about two bubbles that could "bite us" at Bloomberg Market's Most Influential Summit. "I agree with the fact that the economy is definitely getting better. I think the cause of that is two bubbles that will

  3. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  4. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  5. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e