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Money managers under the microscope

Paul Compton: How bitter a pill is the draft EU directive?

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Guest blogger Paul Compton is head of product management at SunGard Alternative Investments.

The views expressed here are the author’s own and do not constitute Reuters point of view.

A recent EU report on the draft AIFM (alternative investments fund managers) directive commissioned by the Parliament’s Committee on Economic and Monetary Affairs has added to the furious debate generated by politicians and by the army of campaign groups mustered against it.

comptonThe report criticised the directive as “poorly constructed, ill-focused and premature,” and something that is likely to impose untenable costs on the alternative investments industry. The draft directive has raised a lot of hackles, but just how bitter a pill will it be to swallow in reality?

AIMA claims “broad consensus” on EU hedge fund directive

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For UK-based opponents of the controversial EU hedge fund directive, there are signs the draft could be overhauled.

rtrrzy9Hedge fund industry body AIMA said today “there is now a broad consensus among European policymakers that the directive does need a lot of work and that there will be significant revisions”.

Turn! Turn! Turn!

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For all the political noise about hedge fund regulation, today’s Turner review looks like a relatively easy set of rules for the industry to stomach.

rtrixobIn his 126-page document, mostly about the banking sector, FSA chairman Adair Turner says the watchdog will demand more information from hedge funds and says regulators should be able make rules in areas such as capital and liquidity if hedge funds start to pose systemic risks or become “bank-like” in their activities.

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