EU hedge fund laws would hit growth, says study

The European Parliament's formal assessment of the effect of the alternative investment fund manager directive - proposed this year by the European Commission - said the draft rules were "premature" and based on a "dearth of evidence".

Though regulation of the sector was needed, according to Europe Economics, the think-tank commissioned to write the report, the current proposals were misguided.

The Short Impact Assessment by Europe Economics builds on the Impact Assessment carried out by the European Commission to provide a quantitative assessment of the costs and benefits associated with the so-called 'AIFM Directive'. It considers the rationale for intervention in
the AIFM sector, as well as alternative approaches for regulation.

European Parliament: Article, 9.12.09: Interview with Jean-Paul Gauzès MEP, rapporteur on "hedge fund" directive http://www.europarl.europa.eu/news/public/story_page/042-66078-341-12-50-907-20091207STO66063-2009-07-12-2009/default_en.htm

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

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

Council of the European Union: Sweden: EU Presidency: Proposal for a Directive of the European Parliament and of the Council on Alternative Investment Fund Managers and amending Directives 2004/39/EC and 2009/…/EC - Revised Presidency compromise proposal, 25.11.09 http://register.consilium.europa.eu/pdf/en/09/st16/st16622.en09.pdf

European Parliament: DG Internal Policies: Ex-ante evaluation of the proposed Alternative Investment Managers Directive, 2009 http://www.eer.co.uk/download/2009shortAIFMdirective.pdf

ESO: Background information: EU seeks pact on hedge funds http://www.europeansources.info/record/eu-seeks-pact-on-hedge-funds/

EurActiv, 9.12.09: Funds regulation 'to ward off recession risks' http://www.euractiv.com/en/financial-services/funds-regulation-ward-recession-risks/article-188161

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