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U.S. Group Seeks EU Fund Directive Answers

Date: Friday, August 14, 2009
Author: EMII.com

The U.S. Investment Adviser Association has called for clarification on the European Commission's plans to roll investment managers from outside the EU into the proposed Alternative Investment Fund Managers Directive. The IAA is concerned that asset managers in non-European countries will not be able to operate on a level playing field with those inside the EU. Industry professionals have warned that U.S. hedge fund firms may be the biggest losers under the directive (CR, 5/18).

In a July 29 letter to the Commission, Jennifer Choi, assistant general counsel to the IAA, called on the EC to set out criteria for supervisory equivalence and market access. The IAA asked for confirmation that non-EU managers would be allowed to obtain authorization on the same basis as EU managers under the directive without having a physical presence in Europe.

"There are concerns about whether the proposed directive would allow EU investors to continue to be served by U.S. managers," Choi told CR. "I think it's difficult to say at this stage what might happen, but we hope that at least these issues will be clarified so that EU investors can benefit from expertise provided by international managers."