Syed Kamal (ECR/UK), shadow Rapporteur for ECR as well as Kay Swinburne (ECR/UK) and Vicky Fox (ECR/UK) questioned the rationale of regulating all non-UCITS funds if they have not been identified as the cause of the crisis, yet are key drivers for economic growth. Moreover, they highlighted that there is a need to review the impact assessment as drafted and examine it in more detail.

 

Wolf Klinz (ALDE/DE), shadow Rapporteur from the Liberals, argued that he would have liked to have seen two different directives; one for the Private Equity and the other for Hedge Funds instead of having one broad directive regulating all alternative investment fund managers which could lead to an inefficient regulation. He warned that the Directive could ultimately lead to funds not only leaving London, but altogether turning their back on Europe.

 

At the other extreme, Pascal Canfin (Greens/FR), disagreed completely with ECR and said that there is an urgent need to regulate these funds as they have created systemic risk and badly damaged consumers.

 

Regarding the timeline of the Directive, Rapporteur Jean-Paul Gauzés (EPP/FR) remarked that it is unlikely to be passed before 2010. Although the Council may be ready for it by Christmas, MEP´s will hold a substantial debate on it.

 

The Swedish Minister of Finance, Mats Odell, was very positive about the inputs given by the industry on AIFM and the Presidency is doing its best in order to reach a consensus for a better regulation which will not be such a burden for the industry.

 

There is concern about the G20 meeting as to how the Council will gather all Member States opinions on financial and economic issues and be represented by just one single and powerful voice. Some MEP´s referred to the comments made by Chancellor Merkel and President Sarkozy on banks’ bonuses.