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By Benedicte Gravrand, Opalesque London:

The European Commission (EC)'s proposed Directive to regulate alternative investment managers, issued last week, generated many reactions and concerns, both positive and negative - but mostly negative. A London-based regulatory consultant argues for the positive aspects, and puts forward some of the changes that need to be done to the Directive for it to be more practical.

About the proposed Directive The EC last week published a proposed Directive to regulate Alternative Investment Fund Managers (AIFMs) established in the European Union (EU), managing more than Eur100m (or Eur500m where funds have no leverage and a lock-in period of five years or more).

The Directive wants to address issues about the regulatory and supervisory framework for the EU funds sector - in particular, according to law firm Herbert Smith's briefing, the concern that regulatory approaches are nationally focused and insufficient to supervise cross-border activities or respond to macro-prudential risks.

The proposed AIFM Directive is part of the EC's response to the financial crisis, as set out in the Communication on Driving European Recovery. ......................

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