EU finance ministers back AIFM Directive
20 October 2010
The deal achieved would give the European Securities and Markets Authority greater powers to ensure that national regulators are upholding the requirements of the law on foreign funds and managers.
The Council reached agreement on a draft directive on the management of hedge funds and other alternative investment funds, with a view to concluding negotiations with the European Parliament so as to allow the text to be adopted at first reading. It also approved a report on levies and taxes on financial institutions.
The Council reached agreement on a draft directive on the management of hedge funds and other alternative investment funds, with a view to concluding negotiations with the European Parliament so as to enable the text to be adopted at first reading.
The draft directive is aimed at:
– establishing a harmonised framework for monitoring and supervising the risks that
alternative investment fund managers (AIFM) pose to their investors, to counterparties, to other market participants and to the stability of the financial system;
– allowing AIFM to provide services and to market funds throughout the EU single market, subject to compliance with strict requirements.
It is intended to fulfil commitments made by the EU at the G-20, as well as the European Council's pledge to regulate all market operators whose activities might pose a risk to financial stability.
There is already a large degree of consensus on the text, and the Council highlighted its intention to conclude the negotiations in the near future, on the basis of its agreement.
© ECFIN
