No date for the vote has been set, but it is understood to have been pushed back at least until September, by which time Belgium will have replaced Spain under the EU’s six-monthly rotating presidency.
In a statement, the directive’s rapporteur and French MEP Jean-Paul Gauzès said he regretted that “a suitable compromise text agreeable to all sides” had not been achievable during Spain’s EU presidency.
"I have now met with the Belgian minister of finance and the discussions were fruitful,” he added.
"Work will continue during the Belgian presidency, and I am confident that an agreement will be reached in time for a September vote."
Good for UK funds houses
The delay is being seen as good news for those countries, such as the UK, which have opposed the directive on grounds that it could make it more difficult for fund managers to market their funds across borders, since this could give them more time to argue their case.
Countries outside the EU, like the Cayman Islands, are also expected to be relieved by the reprieve.
Sources familiar with the negotiations say the difficulties in arriving at a text that is likely to please everyone centre on the issue of these non-EU countries, and whether they should be permitted to market their funds into Europe through a passporting system, or through a form of private placement regime similar to the current arrangement.
As previously reported, the directive is being promoted by France and Germany in particular, on grounds that it would help to prevent a future financial crisis by forcing companies to meet high standards of transparency and to retain greater capital reserves than are now required.
