McCREEVY: the AIFM proposal is proportionate in the requirements imposed

21 September 2009

His speech focused on the role which regulation and supervision plays in the Commission's strategy to help get Europe out of the current situation and prevent a similar economic crisis in the future.

His speech focused on the role which regulation and supervision plays in the Commission's strategy to help get Europe out of the current situation and prevent a similar economic crisis in the future.

The proposed AIFM Directive will:
·         create a comprehensive and effective regulatory and supervisory framework for AIFMs at the European level;
·         provide robust and harmonised regulatory standards for all AIFMs within its scope;
·         enhance the transparency of the activities of AIFM and the funds they manage for investors and public authorities;
·         be proportionate in the requirements imposed, which differentiate between different instruments according to the level of risk they pose;
·         take into account the ongoing work being carried out at global level to tackle the issue of off-shore centres, whilst avoiding closing the door to fund and service providers located outside the EU; and
·         open new internal market opportunities for industry through the new passport, whilst ensuring that investors are properly protected.
He also recognised that there are certainly ways to improve the Commission’s proposal in several respects, for example, on technical issues such as depository arrangements and valuation.
With regard to the international perspective, he remarked that the best regulation and supervision in the world will be no use to Europe if the rest of the world is not appropriately regulated. Global co-ordination is essential. That is why, he said, he was very encouraged by the outcome of the G20 summit in London at the beginning of April.
He concluded by saying that: “we cannot use regulation to get out of a crisis once it has hit – trying to do that is a path to bad, short-term regulation; you can only use regulation to try to prevent the next crisis hitting, or hitting so hard. That is precisely what we are trying to do.”
 
Full speech
 

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