Glimmer of Hope for UK Despite AIFM Directive Approval

The European Commission's Committee on Economic and Monetary Affairs (Econ) and the Council of Economics and Finance Ministers (Ecofin) are both voting on different versions of the Alternative Investment Managers Directive.

"In many cases the two drafts are conceptually worlds apart: Econ talks of handing power to the newly created European Securities and Markets Authority to enforce rules, while Ecofin envisages the Committee of European Securities Regulators, a body comprised of national regulators and so more allied to national interests, executing those functions.

'The Council proposal is, generally, more industry-friendly,' said Lisa Cawley, partner at law firm Kirkland & Ellis International. However, both versions have good and bad bits.

'The Econ version does exempt private equity firms from the requirements on regulatory capital, periodic valuations and depositories,' she added."

This article appeared in its entirety in the May 24, 2010 edition of International Financing Review