A Directive in flux - Gauzes says a solution and compromise can be achieved

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"There has been much lobbying by industry participants since the initial Alternative Investment Fund Management Directive, “AIFMD “ text was published in April 2009. The proposals were met with much controversy when first issued and wide debate behind the scenes in Europe. However, the time for lobbying is all but over with the proposed Directive having moved a step closer to finalisation following approval on 17th and 18th May by the European Parliament and the European Council of their respective drafts of the Directive, (separate Directive texts with differing proposals).

Since December 2009, Parliament and Council have worked separately on the Directive draft to consider the proposals and reach an agreed position by which to commence a trialogue of discussion with all parties, the Commission, Parliament and Council. At Parliament level (ECON), Jean Paul Gauzes, the lead Rapporteur has been working hard in his role to orchestrate compromises between the different political parties represented in the Committee. Gauzes who is widely known for delivering compromise legislation on time, has succeeded in bringing forward an agreed Parliamentary proposal on 17th May by which to commence the tri-party discussions. This draft contains a more stringent approach than that of Council, particularly around the scope of the Directive, third country measures, transparency disclosures, delegation arrangements and liability matters. These measures are further explained in the comparative table on page 3.

Separately, Council have considered the proposals of the Spanish Presidency Text issued in December and having reached agreement on a revised text, also voted and accepted their version on May 18th again paving the way for the commencement of the trialogue process. Council’s text, while not considered to be as stringent as Parliament’s proposals does contain measures which remain a significant concern for the industry. It is hoped that we will start to see a more workable compromise emerge as the negotiation process commences."