The European Parliament has postponed the adoption of the Alternative Investment Fund Managers directive after failing to reach an agreement between members at a meeting yesterday.
The approval of the controversial directive had been scheduled for July, but members were unable to agree on a number of issues, including the proposed "passport" rule.
The development of this directive has been accompanied by wide criticism since its first draft was published in spring last year. In particular, the current version contains a much criticised rule which would require non-EU alternative funds to gain an "EU passport" to be able to market their products to EU investors.
Economic and Monetary Affairs Committee spokesman John Schranz said the Council refused proposals to launch a three-year transition period during which the private placement and passport regime would run side-by-side before the axing of the former.
They instead insisted on another three years of the current private placement regime before looking at whether or not to introduce passports at a later date.
"The third country issue took a long time, there was still no resolution on that and it slowed everything else up," Schranz said.
"Private equity issues were not able to be dealt with at all and there were still some things to be ironed out on scope. Council wanted private placements to remain but the argument from the rapporteur was, 'Why are we talking about this directive at all? If it is not about having a passport why did we waste all these months on it?'"
MEP and AIFM rapporteur Jean-Paul Gauzès said he now expected an agreement to be reached in time for the second plenary session of September.
"With regret I must note that the Spanish Presidency of the EU was not able to present a suitable compromise text agreeable to all sides," Gauzès said.
"I have now met with the Belgian Minister of finance and the discussions were fruitful. Work will continue during the Belgian presidency and I am confident that an agreement will be reached in time for a September vote".
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