The main vote, though, will take place tomorrow, when EU ministers are expected to approve the so-called Alternative Investment Fund Managers (AIFM) directive.
As reported, many in the UK investment fund and pension fund industry argue that the regulations would drive up costs, reduce investor choice and act as a barrier to the European market by non-European (“third country”) fund houses.
However, most European countries, with the exception of Britain and the Czech Republic, broadly support the AIFM directive because, they say, 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.
Critics of the proposed directive include the UK’s Investment Management Association, National Association of Pension Funds and Alternative Investment Management Association. US Treasury Secretary Tim Geithner has also expressed concern that it would "discriminate" against US firms.
French MEP Jean-Paul Gauzes who, as the directive’s "rapporteur" is responsible for overseeing its progress, has responded to such concerns by noting that only those companies that do not meet what he regards as the directive’s reasonable standards need "worry".
