EUROPE - The European Parliament economic and monetary affairs committee (EP) reached a compromise agreement on the scope of the Alternative Investment Fund Managers (AIFM) directive that could allow non EU-domiciled funds to be marketed in Europe.
Yesterday's EP agreement comes after EU finance ministers met in Brussels on Tuesday but scrapped the AIFM from the agenda as "more work is needed on the proposals". (Global Pensions, March 17, 2010)
Jean-Paul Gauzès, the French MEP responsible for steering the package through the European Parliament, said: "We should not wait for the Council. By continuing our work on schedule the Parliament will be able to produce a text which will provide a good basis for the other institutions."
On third country issues, the compromise proposal accepted the transition period idea previously suggested by Gauzès. According to this proposal, the European Commission would search for regime equivalence with non-EU countries.
"If equivalence is deemed to exist, the funds can be marketed in all Member States Fund managers outside the EU whose country has no equivalence recognised will be barred from EU marketing. EU investors will also be forbidden from investing in funds under the responsibility of these managers," the EP said.
In addition, those funds created before January 2010 can continue to be marketed in the EU through the private placement regime.
The newly proposed deal maintains that all non-UCITS funds must be covered by the directive. However, the EP said distinctions between funds will be provided for, with certain funds being regulated more lightly according to rules defined in the new proposal.
The EP said the proposed position is to be voted on in April in the economic and monetary affairs committee. "It is then expected to be passed on to the plenary for a vote in July," it added.
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