Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Aima Andrew Baker

8574

AIMA expresses concerns over ESMA’s AIFMD ‘third country’ proposals

RELATED TOPICS​

The Alternative Investment Management Association (AIMA), the global hedge fund association, has expressed concerns over how the Alternative Investment Fund Managers Directive (AIFMD) would apply to non-EU managers and funds under proposals by a task force of the European Securities and Markets Authority (ESMA).

 ESMA is responsible for giving advice on specific rules and regulations that will enable the AIFMD to be implemented under an on-going process known as ‘level 2’. AIMA said the latest proposals went further than what was required – or even permitted – by the ‘level 1’ legislation agreed last year by the European Council, the European Commission and Members of the European Parliament. The Directive is scheduled to take effect in July 2013.
 
In its response to an ESMA consultation exercise on the third country issues, AIMA said the proposed measures, if enacted, could have the practical effect of preventing EU investors from investing in non-EU hedge funds such as those managed from the US, Canada, Hong Kong, Singapore, Australia and Switzerland.
 
AIMA said that many passages of the consultation paper reintroduced the concept of “equivalence”, which was rejected during the Level 1 negotiations. Under such strict equivalence, it would be difficult for EU managers to delegate portfolio management to third country asset managers.
 
AIMA CEO Andrew Baker (pictured) says: “The concept of equivalence was thoroughly considered, discussed, and, importantly, dismissed during the legislative process in a number of areas, as it was apparent that it would be unworkable.”

Baker adds: “The practical implication of the proposals is that some investments into non-EU jurisdictions would become very difficult, if not impossible. Furthermore, it is difficult to imagine how the equivalence of dozens of jurisdictions could be assessed within the implementation deadline. In some parts of the proposal it’s not even clear who would be responsible for such an assessment.”

Latest News

Morgan Stanley Investment Management (MSIM) has announced the launch of the MS INVF Systematic Liquid..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins..
Discretionary fund manager ebi Portfolios, and asset manager Amundi have launched the SRI portfolio range,..

Related Articles

n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US are committed to implementing a variety of measures to address climate change and reach their net-zero goals, according to Cerulli Associates...
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US..
Lord Hollick, House of Lords
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with genuine independence from government and how they are held to account...
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with..
Rob Edwards, Morningstar
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed bag in 2023...
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed..
David Vieira, JTC Group
Investment trusts are the latest sector of the financial services industry to come under fire for failing to cater adequately for responsible investors...
Investment trusts are the latest sector of the financial services industry to come under fire for failing to cater adequately..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by