Dan Waters spoke on the European regulatory agenda for hedge funds. He looked at the AIFMD, saying there were things in it to support. It is important to have a proportionate regime which gives regulators the right information. He spoke on five particular themes:

  • scope of “AIF manager”;
  • leverage;
  • custody issues;
  • third country issues; and
  • remuneration.

He said it was time to move beyond the initial outrage at the proposals and hope to negotiate a sensible position. He noted the US is likely to require manager authorisation and regulatory disclosure, both of which the UK already does. But the US seems unlikely to follow some of the more radical aspects of the proposal.