EUROPE - Introducing unnecessary detail to new Alternative Investment Fund Managers Directive (AIFMD) measures could harm investors, the Investment Management Association warns.
Responding to the European Securities and Markets Authority's (ESMA's) Call for Evidence, the IMA said introducing further unnecessary detail into AIFMD's Level 2 and 3 measures could cause detriment to investors by restricting access to funds and strategies.
IMA director of authorised funds and tax Julie Patterson said: "The AIFMD covers a large and varied range of investment vehicles. There are close to 2,000 alternative investment funds (AIF) in the UK alone. IMA members are also the appointed investment managers of a very large number of AIF, domiciled in other jurisdictions.
"AIF investors are active market participants. Any further measures should not cut across their ability to access the investments and strategies they desire.
"The AIFMD is already a detailed piece of legislation. We therefore urge ESMA to resist introducing further unnecessary detail into Level 2 and 3 measures, and to use directives rather than regulations at this stage.***
"We support the principle of harmonisation, but detailed regulations could cause detriment to investors and run counter to the overarching principles articulated by the Commission."
The IMA's response follows calls by the Alternative Investment Management Association (AIMA) that the implemented form of AIFMD should be flexible, proportionate and based on the principles of openness and transparency.(Global Pensions: 17 January 2011)
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