The European Parliament has been discussing the draft Alternative Investment Fund Managers Directive. It has been going through the Gauzes report and suggesting changes. Among the key issues discussed were:
- removing the €100 million threshold exemption from application of the Directive and replacing it with a proportionality rule. Parliament agreed it would be important to define this rule properly so as not to regulate funds which do not need regulation;
- marketing and non-EU funds: the report agrees that marketing of non-EU funds should be subject to domestic legislation in each Member State but removed the planned three-year period before this provision would take effect. There were mixed views on whether non-EU funds would be in a better or worse position than EU ones;
- leverage and what rights Member States should have to lay down conditions defining limits;
- applying a harmonised short-selling regime; and
- remuneration: again there were mixed views on whether it would be appropriate to apply similar rules to those proposed for banks to fund managers.
Parliament will next discuss the amendments on 17 March and eventually put them to a plenary vote in July.