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AIFMD decision deferred
The European Union has deferred a decision on the planned new regulation to govern hedge funds, Alternative Investment Fund Managers Directive (“AIFMD”) which was due to be taken yesterday (16th March 2010) by the EU’s economy and finance ministers gathered at the Ecofin meeting.
The European Commissioner for Internal Market and Services, France’s Michel Barnier, pointed out that the decision to postpone the discussion was "the responsibility of the Spanish Presidency".
Sources at the Spanish Presidency said this agenda item was removed because of the wish to ensure the greatest level of agreement possible in relation to this directive, which will be of key importance to the financial sector.
"We have made a lot of progress, and we want to go even further and ensure the maximum support possible", the Spanish Presidency’s spokesperson, Cristina Gallach, said in Brussels.
The discussion has been postponed until a meeting to be held at a later, still undefined, date. The Spanish Presidency has assured that this will definitely take place during its six-month term, which finishes at the end of June.
It has been reported that UK concerns over the draft law are a key factor behind this delay, as an agreement was expected at yesterday’s meeting.
Arriving at the Ecofin meeting, the Spanish Minister of the Economy and Finance, Elena Salgado, said she would be working to convince as many delegations as possible.
"It is always good to have the highest level of consensus possible, and so we are going to work towards this", said Salgado, answering a question about whether a draft agreement could be forged on Tuesday without the support of the United Kingdom.
The UK has previously expressed reservations over the proposals amid concerns that investors would abandon London for other financial centres like Geneva.
Under the current draft proposals, funds would be subject to governance standards and rules governing risk management, liquidity and conflicts of interest. Hedge funds not based within the European would be required to comply with the new rules in order to gain access to EU Investors.
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Europe