Parliamentary Committee votes in favour of proposed rules for non

Sharon Bowles MEP <info@sharonbowles.org.uk>

Parliamentary Committee votes in favour of proposed rules for non - EU funds

May 18, 2010 12:00 PM

Sharon Bowles MEP voting in the European Parliament

Sharon voting in the European Parliament

The European Parliament's Economic and Monetary Affairs Committee has voted through its report on the Alternative Investment Fund Managers Directive - proposed legislation which will regulate the European fund industry, including controversial players like hedge funds and private equity but also other funds such as investment trusts and real estate funds.

Liberal Democrat MEP and Committee Chair, Sharon Bowles, expressed regret today at the Committee's decision to vote for restrictions on non-EU funds at a session in the European Parliament last night.

Sharon Bowles said:

"I welcome the several workable and sensible changes introduced in this report and think that when these are merged with the Council's report we will be 90% of the way towards a very good text. My liberal colleagues and I have worked very hard to improve the proposed AIFM Directive and ensure that it finds the right balance between regulating the fund industry and ensuring that it can still be successful.

"In several areas we have secured significant improvements, including greater proportionality for small funds, greater clarity and flexibility in depositary liability requirements, and the removal of the more burdensome private equity requirements.

"However, I am disappointed that the rules are not sufficiently flexible for EU investors in non-EU funds, which risks creating 'prison Europe'. I fear these restrictions could severely hamper the ability of pension funds and other investors to make those vital returns which are necessary to provide for our ageing population.

"I am also concerned that some funds and fund managers in developing countries will no longer have access to finance from EU investors since the barriers for so called 'passive marketing' are too high.

"Given the ever increasing presence of China in Africa and elsewhere, I feel the EU is losing its strategic advantage by restricting itself through such measures."

ENDS