Protectionist proposals for hedge funds directive
Posted, May 19, 2010 @ 00:00
Strasbourg, 18th May 2010 -- An alliance of the Communist, Green, Socialist and EPP groups in the parliament supported amendments to create a heavily protectionist Alternative Investment Fund Managers (AIFM) directive, which will make it extremely difficult for EU investors to invest in non-EU funds, Syed Kamall MEP, European Conservatives and Reformists group shadow on the directive, warned today.
The parliament's Economic and Monetary Affairs committee adopted the proposals last night ahead of a meeting of Finance Ministers in Brussels today. The text adopted by MEPs would reduce the value of workers' pensions funds and make it almost impossible to invest in development-oriented funds in poorer countries. Dr Kamall also warns that it could lead to a retaliation by the US, banning US investment in new green technologies in the EU.
After the vote Dr Kamall said:
"There is a coalition of Communists, Greens, Socialists and EPP members who supported a more protectionist directive. However, there is still a significant level of opposition to the rapporteur's position and that should be taken into account. The Council of Ministers is wrong to rush this through.
"The Finance Ministers of France and Germany have said that qualified investors should be able to invest in funds around the world, "irrespective of quality standards set for state-of-the-art European hedge funds". The parliament's position would make this very difficult.
"Pension funds would lose value, investment in developing countries and green technologies would dry up and the costs for EU investors will rise unless these plans are made more proportionate. We can improve the registration and transparency of hedge funds while avoiding the Fortress Europe approach of the Communists, Greens, Socialists and EPP alliance."
ECR coordinator on the Economic and Monetary Affairs committee, Kay Swinburne MEP, said:
"To single out alternative fund managers in this way when they had no direct involvement in the financial crisis is unwarranted and ill-timed when the flows of investment into research companies are so dependent on non-EU funds into venture capital. These entrepreneurs are the future European growth engine, to starve them of funds now would be a mistake."?