Tuesday, May 18, 2010

Update: AIFM Directive Advances

On May 17, 2010, a revised version of the Directive on Alternative Investment Fund Managers (the "AIFMD"), originally proposed by the Commission in April 2009, passed the Economic and Monetary Affairs Committee of the European Parliament (the "ECON") with a vote of 33 to 11, with 3 abstentions. As stressed in the ECON press release, the main changes proposed by the European Parliament are intended to "increase investor protection and transparency while reducing the potentially protectionist dimension" of the Commission's proposal.

The European Parliament move was followed today, May 18, 2010, by a similar endorsement of the proposed AIFMD by EU finance ministers. As reported by the Financial Times, there are several discrepancies between the Council and the European Parliament versions of the AIFMD, in particular with regard to so called "third-country" provisions regulating the ability of non-European managers to market their funds within the EU.

Before the AIFMD becomes law, the Council of Ministers and the European Parliament must reach an agreement on a compromise version, and negotiations are expected to begin on May 31, ahead of the first-reading vote by the full Parliament, scheduled for July. We will continue to monitor future developments on the subject and report on any progress.

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