Thu, Sep 3, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

AIMA: If EU diverges from G20 path on hedge fund regulation, it could fragment global markets

Thursday, April 22, 2010
Opalesque industry update - The European Union should not diverge from the path already set by the G20 on hedge fund regulation. Doing so could fragment global markets, create inconsistent regulatory requirements and result in international trade disputes. That’s according to the Alternative Investment Management Association (AIMA) – the global hedge fund industry association.

Andrew Baker, Chief Executive Officer of AIMA, said: “The G20 summits in Washington and London set the course for a new global regulatory framework for hedge funds and other private pools of capital. It is worth remembering just what world leaders did sign up to with regards to hedge funds. They agreed that all hedge fund managers should be registered and authorised by their national regulators, and that managers should report systemically relevant data to those regulators in the interests of financial stability. They concluded with an unambiguous declaration that they would not follow a protectionist path.

“While other members of the G20 have followed the agreed path, Europe’s Alternative Investment Fund Managers Directive is in danger of diverging from it through creating protectionist restrictions on non-EU funds and managers accessing EU investors, and by seeking to insert additional prescriptive product or fund-level regulation on issues like leverage and depositaries. None of this supports improved financial stability, which was the G20 goal. This potential divergence from the G20 path has caused significant concern globally.”

G20 Finance Ministers will meet on 22nd-23rd April in Washington DC. U.S. Treasury Secretary Timothy Geithner has written two letters on the AIFMD to European policymakers expressing his concerns that EU investors will be effectively barred from investing with non-EU hedge fund managers.

AIMA has also warned of a potential protectionist outcome from the Directive, saying that 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 and Australia.

AIMA supports the goals of the G20 and the principle of increased transparency by the industry, including the reporting of systemically relevant data and the registration of hedge fund managers.


As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has more than 1,100 corporate members (with over 4,500 individual contacts) worldwide, based in over 40 countries. www.aima.org.


Bg

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. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  3. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner