Money managers under the microscope
Guest blogger Dale Gabbert heads the funds group in the London office of law firm Reed Smith. His practice covers hedge funds, private equity and property funds and he is the author of Hedge Funds, a legal guide published by Butterworths Lexis Nexis.
The views expressed here are entirely the author’s own and do not constitute Reuters’ point of view.
Rather than take a sniper’s aim at systemic risk, the draft EU Directive on Alternative Investment Fund Managers is more of an ill-conceived drive-by shooting that injures the innocent whilst leaving the intended target unharmed.
Whilst few would dispute that radical steps need to be taken to control systemic risk, the directive is likely to cause widespread collateral damage to the financial services industry whilst failing to deliver significant regulatory benefits.