On 10 December 2009, the House of Lords EU Committee wrote to Lord Myners (Financial Services Secretary) to express concern at the draft Alternative Investment Fund Managers Directive.
Key points in the Committee's letter were:
- Whilst welcoming the broad aims of the Directive, the Committee were concerned that the Directive does not complement global regulatory arrangements. In particular the Committee stated that “Coordination with the US regulatory regime in particular is essential to avoid a situation in which the EU Alternative Investment Fund industry loses competitiveness at a global level.”
- The Directive risks seriously damaging the EU economy unless it permits the marketing of non-EU funds within the EU and also allows EU funds to invest outside of the EU.
- The current 'one size fits all' approach to proposed regulation put forward by the European Commission is flawed.
- The proposals give an unnecessary level of protection to alternative investment fund investors who are typically well informed institutional investors and banks.