IMA warns EU against adding to alternative fund directive

The Investment Management Association (IMA) has warned that unnecessary detail in the EU’s Alternative Investment Fund Managers (AIFM) directive could lead to investor detriment.

The IMA says the roughly 2,000 alternative funds in Britain that will come under the AIFM directive could be hampered by further rules, responding to the European Securities and Markets Authority’s call for evidence on the directive.

Julie Patterson, the director of authorised fund and tax at the IMA, says: “AIF investors are active market participants. Any further measures should not cut across their ability to access the investments and strategies they desire. (article continues below)

“The AIFMD is already a detailed piece of legislation. We therefore urge ESMA to resist introducing further unnecessary detail into Level 2 and 3 measures, and to use directives rather than regulations at this stage.”

Level 2 of the AIFM directive process is the rule-making phase.