Lord Myners to face hedge fund grilling by Lords
Lord Myners, Financial Services Secretary, will this week be questioned by the House of Lords EU sub-committee over the controversial Alternative Investment Fund Managers Directive (AIFM Directive).
The directive requires managers of funds to register and submit data to regulators, creating extra costs and stifling investments from hedge funds and private equity groups.
Experts say the directive is protectionist and shows a complete lack of understanding of how alternative investment funds work. London based hedge funds have threatened to quit the City if it goes ahead.
“It is vital that this (directive) is fully consulted on and carefully designed,” said business secretary Lord Mandelson in Brussels. “We have to make sure that we don’t cut off important sources of venture capital or do anything that makes it harder to manage venture capital investments within the single market.”
Myners is to give evidence on how the AIFM Directive compares to current proposals for regulation of hedge funds, whether or not the directive will permit equivalency between EU and third country funds, and problems relating to the marketing of non-EU funds.