AIFMD - EU Parliamentary vote looms, September 2010

To recap, at the end of May 2010 the European Parliament’s ECON Committee (“the Parliament”) and The Council of the European Union – Economic and Financial Affairs Council (“the Council”) both separately reached agreement on their own version of the AIFMD.  There are, however, many and important differences between the two versions.

Both versions contain a number of provisions that caused concern to the alternative asset management industry in the areas such as marketing, depository liability, portfolio company disclosure, remuneration rules and leverage.  It is generally accepted that the AIFMD will be passed; albeit it is hoped that industry lobby groups will have been able to influence the European policymakers in order to make AIFMD more workable and fairer to the alternatives sector.

A process of “trilogue” has ensued since the publication of the Parliament and Council’s versions in May.   This has involved the Parliament, Council, and European Commission seeking agreement on a common text.  It was originally thought that this text would be ready for the first full reading vote by the full European Parliament in early July 2010.  However, this did not occur and due to the summer recess it currently appears that this vote will now take place in September or even October 2010.  If agreed upon at this time, it is not likely that the Directive will be incorporated into UK law before the end of 2012.

IMS will closely monitor developments and will issue Regulatory Briefings should there be any significant developments over the coming months.