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The Lords EU Committee report finds "serious concerns" with the original proposal and strongly recommends that the resulting directive should be consistent with an international approach. Without this it warns it will seriously damage the
Responding to the document, Simon Walker, BVCA CEO said:
"We welcome the House of Lords EU Committee findings, which sit alongside those of the European Central Bank (amongst many others), in pointing out the dangers of the initial proposal. In our evidence to the committee's enquiry, the BVCA made clear the negative impact which the legislation could have on our industry here as well as on much needed investment in to businesses right across the EU.
We have always said we are not against further EU regulation - indeed a harmonised framework for alternative investment funds could bring advantages. However, our chief concern continues to be to ensure that what is enacted does not damage the EU's competitive position globally, for that is what is ultimately at stake here.
The Directive could restrict the ability of private equity and venture capital firms to raise and invest funds, thus stunting future growth. At a time when the industry's capital and skills are needed more than ever, we must ensure the regulation is proportionate and workable. The BVCA continues to work with its European partners towards that end."