12/11/2009 Author: Tony Griffiths

EU hearing airs Directive opposition

An impassioned speech on behalf of Europe’s largest pension fund led calls for an extensive redrafting of the Alternative Investment Fund Managers (AIFM) Directive at a public hearing in Brussels yesterday arranged by the European Parliament.

The two-hour event saw eight panellists – including Deutsche Bank’s head of prime brokerage, Anthony Byrne, there to represent the sell-side – invited to address the 48 member’s of Parliament’s Economic and Monetary Affairs (Econ) Committee, as the group prepares to draft its own version of the controversial legislation.   

Though the wide scope of the Directive meant a large number of topics were discussed, Panellists agreed that increased fund regulation was necessary, but that the current draft of the Directive was unworkable.  

Most aggressive in his display of disappointment was Gerben Everts, head of regulations and compliance at Dutch pensions’ manager APG, Europe’s largest with €230bn ($344.5bn) in AuM. “The proposal could seriously hamper optimal portfolio construction,” he said.

Speaking to HFMWeek after the well-attended event, Byrne said he was “pleased” with how it had progressed and praised the professional job of chairwoman Sharon Bowles, adding that Econ MEPs had offered well-informed and constructive questions.  

The legislation’s rapporteur, Jean-Paul Gauzes, is scheduled to finish his draft of the Directive by the end of the month. Econ members will then discuss amendments before a vote in April.