05/11/2010
Planned AIFM directive is not a step in the right direction, says AFG
The planned AIFM directive, which will be definitively passed on 11 November, is not a step in the right direction, says the AFG. “The directive includes positive aspects and negative aspects. The positive aspects are numerous, including maintaining freedom of investment for professionals and application waiting periods. But there is one major negative element: the passport,” Paul-Henri de la Porte du Theil, president of the French investment management association AFG, said at a press conference on 4 November.“Even the philosophy of the passport is bad,” de la Porte du Theil insisted. The problem is the extension of the passport to non-European companies by 2015, insofar as this widely-discussed opening of the doors will give them the same rights as European companies without subjecting them to the same requirements. “Non-European management firms should be required to set up in Europe, in areas with serious regulation. We missed an opportunity to repatriate funds and jobs, and we will be exposed to competition distortions, since the ‘light’ zones, even if they pledge to apply European governance principles, will remain ‘light.'” the AFG president claims.AFG therefore argues that it is essential to strengthen the role of the new European regulator, the ESMA, which will have the double duty of overseeing the establishment of a genuine European label, and ensuring a minimal competitive equity with offshore funds. “The most important responsibilities to devolve to the ESMA are determined, but the details of their application are not yet,” de la Porte du Theil warns.
