12/05/2010 Author: Tony Griffiths

Third-country vote set to pass despite delays

The controversial third-country provisions in the Alternative Investment Fund Managers (AIFM) Directive still look set to be backed in the EU parliament, despite the chamber this week postponing a vote on the legislation for the third time.

Members of the Economics and Monetary Affairs (Econ) committee, the parliamentary body overseeing AIFM negotiations, were scheduled to vote on Parliament’s version of the draft on Monday, but this was pushed back to 17 May at the last minute.

According to a Brussels source, however, the latest set-back was a result of incongruence between Econ and Juri, the EU’s legal committee, over matters relating to private equity, rather than hedge funds.

Econ member and AIFM rapporteur Jean-Paul Gauzés, the source added, appears determined to stick to his hard-line approach to third country marketing, in order to keep socialist MEPs onside and secure as wide a voting majority as possible.

Hopes for a climb-down on third-country provisions in the EU Council, the second legislative chamber, were boosted last week by a concessionary joint-statement from regulatory hardliners France and Germany.