EU plans for hedge fund rules under fire / EU rules on hedge funds unlikely to end debate

The European Commission proposed on the 29 April 2009 a Directive on Alternative Investment Fund Managers (AIFM). The proposed Directive is an important part of the European Commission's response to the financial crisis, as set out in the Communication on Driving European Recovery.

It aims to create a comprehensive and effective regulatory and supervisory framework for AIFM in the European Union. AIFM, which include the managers of hedge funds and private equity funds, managed around €2 trillion in assets at the end of 2008. This is the first attempt in any jurisdiction to create a comprehensive framework for the direct regulation and supervision in the alternative fund industry.

The proposal now passes to the European Parliament and Council for consideration.

ESO: Background information: France fears hedge fund ‘Trojan Horse’ http://www.europeansources.info/record/france-fears-hedge-fund-trojan-horse/

ESO: Background information: EU draft rules for hedge funds attacked http://www.europeansources.info/record/eu-draft-rules-for-hedge-funds-attacked/

BVCA: Press Release, 29.4.09: Simon Walker, BVCA, and John Cridland, CBI, response to proposed EU regulation of private equity http://www.bvca.co.uk/home/Home-for-launch/features/SimonWalkerBVCAandJohnCridlandCBIresponsetopropose

European Commission: Press Release: IP/09/669: Financial services: Commission proposes EU framework for managers of alternative investment funds http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/669&format=DOC&aged=0&language=EN&guiLanguage=en

European Commission: DG Internal Market and Services: Investment funds: Alternative investments http://ec.europa.eu/internal_market/investment/alternative_investments_en.htm

AIMA: Press Release, 29.4.09: EC Directive does not deliver proportionate response http://www.aima.org/en/media_centre/press-releases.cfm/id/999D2189-AD87-40C4-86B1436063D19423

BBC News, 29.4.09: Europe calls for bonus clamp-down http://news.bbc.co.uk/1/hi/business/8024401.stm

EurActiv, 30.4.09: McCreevy spares hedge funds from tight regulation http://www.euractiv.com/en/financial-services/mccreevy-spares-hedge-funds-tight-regulation/article-181867

European Parliament: Legislative Observatory: Alternative Investment Fund Managers http://www.europarl.europa.eu/oeil/popups/ficheprocedure.do?id=577403

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