BVCA Walker calls Commission proposal on private equity bad for the UK

29 April 2009

Walker called for private equity to be completely removed from the Commission proposal. It is irrational to bring very different asset management classes such as private equity and hedge funds within the same domain, he said.

Simon Walker, chief executive of the British Private Equity and Venture Capital Association (BVCA), today called for private equity to be completely removed from the long-awaited European Commission’s Directive on Alternative Investment Fund Managers.

 

"This proposal has been the cause of intense debate within the European Commission, with a number of key figures doubting its logic”, Walker said. “It is irrational in that it seeks to bring very different asset management classes such as private equity and hedge funds within the same domain”, he underlined.

 

The new regulatory regime will have very significant direct and indirect compliance costs but does not, however, apply to other forms of private ownership placing them at a competitive advantage to private equity. “This proposal is bad for British business", he underlined. “It would effectively override a domestic disclosure procedure under the Walker regime which is widely regarded as working extremely well”, he said.

 

Press release

 

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