The two associations had been among the most active of the various stakeholder groups seeking to influence the scope of the Alternative Investment Fund Managers’ Directive (AIFMD). The directive was originally conceived by European legislators after the 2008 financial crisis, in an effort to provide greater protection to investors.
In September, Ireland’s An Taoiseach (Irish Prime Minister), Enda Kenny, stepped into the debate to support to the country’s funds industry in its opposition to certain elements of the directive that were seen potentially harmful. At that time, Kenny said Ireland, along with a number of other countries, had raised concerns with the EU Commission over the proposed AIFMD Level 2 regulations, as then worded.
But in a statement yesterday, the Irish Funds Industry Association (IFIA) said the final version of the regulations, as published, represented a “key milestone”, and brought “much needed, if not complete, clarity” to funds industry members in a number of areas.
IFIA chief executive Pat Lardner said the Irish industry was “looking to implement the AIFMD in a thoughtful, pragmatic and measured way, easily meeting the required deadlines, to give certainty and comfort to asset managers and investors".
He added: “The Irish funds industry is staying close to all key stakeholders as the practical implementation of AIFMD evolves. Ireland remains flexible and adaptable to whatever final form it may take.”
ALFI: ‘process near completion’
The Luxembourg funds industry, meanwhile, said two major features of the law as drafted were “likely to present a particular interest to the alternative investment fund community”: the creation of a Limited Partnership structure, which it said would "add a flexible and secure partnership structure to Luxembourg’s fund product offering”, and a provision that would enable “additional clarifications regarding the taxation regime of the carried interest”. Carried interest has to do with the way employees of investment fund management companies are paid.
“The development of a regulated alternative investment fund industry in Europe is nearing a reality,” Marc Suluzzi, chairman of the Association of Luxembourg Fund Industry, said.
“The publication of the Level 2 measures finally allows a three-year-long, painful legislative process to near completion.”
ALFI said it intends to continue to work with the industry to ensure that the “necessary operational requirements, in compliance with the [new regulations]”.
As reported yesterday, the European Commission published the 149-page AIFMD implementation document, formally called the Commission Delegated Regulation, with the understanding that the regulations would be subject to a three-month scrutiny period, potentially extendable to six months, by the European Parliament and Council.
Also on Wednesday, the European Securities and Markets Authority (ESMA) launched two consultations on the AIFMD directive, with a closing date for responses of 1 February 2013. ESMA is an independent EU authority that was set up in 2011 to ensure consistent and stable regulations are enacted and enforced across Europe’s financial markets.
