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Stuart Fraser, Policy Chairman for the City of London Corporation, will today warn that the EU Commission’s AIFM Directive – currently under consideration in the European Parliament – is narrowly protectionist and risks blunting economic recovery throughout the EU.
Outlining the City of London Corporation’s position at an event organised in partnership with Policy Exchange and Open Europe, Stuart Fraser said:
“We have a number of major concerns about this directive: it is narrowly protectionist, it fails to take account of the global AIFM market and, if it goes ahead unchanged, it will cause serious damage to an important EU industry.
“AIFMs did not cause the current financial crisis, nor do they pose systemic risks. If we unilaterally decide to impose unnecessary burdens on AIFMs operating in EU markets we risk blunting the economic recovery right across the European Union.”
Stuart Fraser’s comments will come as part of a jointly-organised event to discuss the EU Commission’s AIFM Directive. It is being hosted at the City of London Corporation’s Guildhall, where the G20 finance ministers met last week to prepare for the leaders' summit in Pittsburgh.
Following Stuart Fraser’s opening speech, a key promoter of the Directive and President of the PES Poul Nyrup Rasmussen, Financial Services Secretary to the Treasury Lord Myners, Head of Alternatives at Blackrock Douglas Shaw and Managing Partner, Buyouts at 3i Jonathan Russell, will outline their thoughts on the AIFM Directive and its impact on the UK Hedge Fund and Private Equity industries.
Speaking about the importance of today’s seminar, Stuart Fraser added:
“This is a vital issue not just for London, but for the whole of the EU. Just last week I was in Brussels with the Mayor of London Boris Johnson, for a series of meetings with MEPs and Commissioner McCreevy on this very topic.
“The EU has a vital role to play in helping sort out issues around the financial crisis and The City of London Corporation is committed to working in detail with our colleagues in Europe, and indeed across the world, to get this legislation right. That is why I visited Brussels last week and that is why we are hosting this event today.”
