Concern over pan-European regulations which are being perceived as harmful to both business and private equity dealings with the US and Asia has been expressed by fund managers reports City index.
Citing the Financial Times, a number of additional rules have been added by the European Commission to its Alternative Investment Fund Managers Directive (AIFMD). They are making many fund managers anxious as they’re not in line with advice given by the European Securities and Markets Authority (ESMA).
There are fears that the text drafted shows that that commission’s decision to overrule some ESMA recommendations. Doing their best to allay the concerns, officials in Brussels insist that almost all the advice given has been followed.
Complications and discrepancies are reported to have surfaced over making sure that the AIFMD is implemented legally throughout the EU in a sound manner.
“Implementing measures are made to ensure that the directive is in full working order, and not to try and recoup any losses made in previous compromises”, said a spokesperson for the European Commission in the Financial Times report.
“We have found that support for the direction in which we’re heading is widespread. There are a few issues to smooth over, but that’s to be expected at this stage.”
Joshua Raymond, Chief Market Strategist at City Index said “there has been long running concerns over stricter regulations and naturally if any additional measures are being brought in at the eleventh hour, this is likely to escalate those concerns.”
The AIFMD was published in July 2011, and must be fully implemented by all member states by July 2012.