AIMF Directive proposed changes welcomed by
AIC
13 November 2009
The possible amendments to the Alternative
Investment Fund Managers Directive (AIFM Directive) published by the Swedish
Presidency are wide-ranging and highlight possible changes to the specific
obligations implied by the Directive, such as leverage and liquidity management,
and for the overall framework for its application.
The Association of Investment Companies (AIC) has welcomed the proposals,
since the original proposals which were published in April cause fundamental
difficulties for the investment company sector, and for securing changes
to support the continued operation and vitality of the sector, which is
the AIC’s highest priority.
“The Swedish Presidency’s decision to publish possible amendments
is extremely welcome,” commented Ian Sayers, acting director general
at the AIC. “It sheds light on the direction that Member States
think the proposals might move and should allow a more informed discussion
during the next stage of the debate. The Swedes are to be congratulated
on taking this initiative.
“The proposed amendments demonstrate that policymakers are seeking
to get to grips with critical issues, including those which are fundamental
to the future of the investment company sector.
Notably they raise the possibility of the company itself taking responsibility
for compliance with the Directive. We would welcome this approach as it
would maintain the legal status of the board, remove the possibility of
regulatory conflict between it and the manager and preserve its ability
to ensure the company is run in the best interest of shareholders.”
The AIC also welcomed the serious consideration given to concerns raised
about the impact of the original draft on the relationship of the EU financial
services sector with the rest of the world. “These questions are
among the most complicated and contentious areas of the whole debate.
A number of changes are being put forward which could remove some of the
most serious problems the original approach would create.
“We will be analysing the proposals in detail to fully understand
how the investment company sector might be affected if the Directive were
amended as suggested. However, it is important to recognise that these
changes are not set in stone and they could still be changed by Member
States or MEPs. Nevertheless, these suggestions confirm our view that
the discussions we have been having with policymakers in the UK and Europe
have been constructive and that there is a serious intention to amend
the draft Directive so that it delivers workable rules,” he added.
