On behalf of the European private equity and venture capital industry, EVCA has submitted a response to a consultation by the European Securities and Markets Authority (ESMA) on the implementation of third country rules in the AIFM Directive.
Dörte Höppner, secretary general of EVCA, said: "ESMA has proposed imposing an ‘equivalence’ test for the use of non-EU delegates and depositaries that is not supported in the Directive. The concept of equivalence was considered and dismissed in the AIFM Directive. It is unworkable and would ultimately work against a key goal of this legislation – to protect investors. By unreasonably restricting investor choice and access, the clear consequence would be a concentration of risk within investment portfolios. As the AIFM Directive text envisages, a level playing field between EU and non-EU managers can be effectively achieved through other means, such as cooperation agreements between regulators that assess outcomes, rather than through a line-by-line assessment of equivalence of their respective regulation."
Full response
© EVCA - The European Private Equity & Venture Capital Association
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