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EU accused of protectionism on alternative investments
A draft directive on alternative investment fund managers issued by the European Commission could adversely impact Australian fund managers.
That is the bottom line assessment of the Australian arm of the Alternative Investment Management Association (AIMA), which has warned that if the draft directive is ratified it will mean fund managers and investors based outside of Europe will need a passport to trade with Europe.
AIMA chairman Kim Ivey described the draft directive as 'unreasonable' and said it would make it extremely difficult and costly for non European Union funds and managers to access the European Union market.
“This is clearly a protectionist move,” he said. “Local fund managers will face a major loss of business in the European Union, particularly from London.”
Ivey said Australian managers would be effectively locked out of the market for years and the consequences for Australian-based managers offering alternative investment products would be significant.
“Conversely, if the directive is ratified in its current form, European investors will lose a large sway of investment choice, face increased costs and, as a result, see diminished returns."
AUTHOR
Mike Taylor
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