Several countries, including France, have introduced their own rules on direct lending, but there is a fear that differing national regulations have made it difficult for asset managers to lend money across EU member states.
Patrik Karlsson, regulatory policy director at the ICMA, the international association representing capital market participants, said: “Allowing investment funds to play a greater role in company financing will help diversify the sources of funding in the European economy.”
The belief is that Europe’s economic recovery has been stunted by the retreat among banks to lend to small and medium-sized businesses.
Jiri Krol, head of government and regulatory affairs at Aima, the global association for alternative managers, said efforts to reduce barriers to direct lending are welcome, but argued a common framework could create a regulatory burden.
He said: “Europe already has a common framework under the Alternative Investment Fund Managers Directive that seeks to harmonise operational requirements for asset managers across a wide range of alternative investment strategies. Does direct lending by itself warrant a specific new regulatory regime?”
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