The Great Debate UK

EU funds regulation hits the wrong target


REUTERS– Margaret Doyle is a Reuters columnist. The opinions expressed are her own –

If generals have a habit of fighting the last war, regulators are prone to fighting the war that they think they ought to have fought.

So it is in Brussels, where the European Commission last week (April 29) published a proposed directive on Alternative Investment Fund Managers (AIFMs).

Under this regime, AIFMs — chiefly hedge fund managers and private equity groups — would have to register with their home country regulator and provide extensive information on their business plans and activity, including risk controls, valuation metrics, safe-keeping arrangements and reporting systems.