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21 September 2009

FSA’s Sally Dewar: how the EU AIFM Directive could be made more workable for the industry


There is a need to take a global approach that recognizes the global nature of the sector and does not impose unjustifiable geographical restrictions on firms' business models that would significantly restrict investor choice.

Speaking at the FSA’s Asset Management Sector conference, Sally Dewar said that there is much in the Directive that the FSA can support and stated that "most of us can see value to the European and global capital markets, and the wider economy, in sensible and proportionate harmonization of regulatory standards in the areas under discussion". 

She added, however, that there remain four key areas that need to be addressed to make the Directive more effective for the funds it covers:
·         Correct identification of the weaknesses in the present regulatory arrangements and addressing them in a proportionate way
·         Differentiation between types of alternative investment fund management
·         Adoption of a risk-based approach – the scope and thresholds of the Directive need to strike the correct balance between imposing additional costs and enabling regulators to identify and mitigate systemic risks
·         The need to take a global approach that recognizes the global nature of the sector and does not impose unjustifiable geographical restrictions on firms' business models that would significantly restrict investor choice
 


© FSA - Financial Services Authority


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