29 June 2009

EVCA’s response to EC proposal on AIFM

"The Commission proposal fails to translate the distinction between different types of alternative investment funds into its proposed measures, imposing undifferentiated provisions for all alternative investment funds, " EVCA argues. 

EVCA call for the EU Parliament and EU Council to modify the published proposals to create more tailored provisions on capital and depositary requirements, independent valuation, requirements relating to risk and liquidity and procedures for delegation of authority.

• The scope of the Directive should be reviewed to ensure full respect of the subsidiary by increasing the thresholds applicable to small funds.
• The Directive should accommodate the significant differences between the main types of alternative investment strategies.
• Disclosure requirements should be revised to ensure rules treat all participants fairly and on an equal footing.
• Requirements in relation to “third countries” should be reviewed as they unnecessarily restrict both fund managers located in third countries operation in the EU and EU-based fund managers managing funds in third countries.
• Grandfathering clauses should be introduced for requirements that have an impact on existing alternative investment funds that are not leveraged and have no redemption right.

© EVCA - The European Private Equity & Venture Capital Association