Gwyn Roberts

16/11/2011 Author: Gwyn Roberts

Editor's view: 16 November 2011

A broken Europe maybe the topic du jour for the world’s press, but no one appears to have reminded its agencies of this. From the Commission, to the European Parliament itself, there is a genuinely worrying impression of institutions going about their normal business, as they ignore the gathering storm.

On Wednesday, another European institution, Esma, the EU’s financial regulator, could be about to unleash a minor squall of its own, when it reports back on its AIFMD level 2 consultations. Early signs are that very little has changed, with the biggest bones of contention remaining depositary issues and third-country rules; although the latter will not become a burden until post-2015.    

“We have spoken,” said one source involved in the consultation, “but we think the text remains broadly similar.” This isn’t necessarily a terrible thing, but now level 2 is complete, the Directive will leave the hands of Esma’s impartial technocrats and become a political football again, as it is kicked between the Commission and Parliament.  

AIFMD has come a long way since its widely leaked arrival in April 2009, but it remains the sector’s largest regulatory thorn – more problematic than Dodd-Frank et al – and could create real problems if the politicos dispense with Esma’s advice and start to demand amendments.   

Whatever happens, and it is likely the level 3 process will be drawn-out, despite the current tight timetable, the industry needs to remain watchful and as engaged as ever. 

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