Peter De Proft, the director general of the European Fund and Asset Management Association (Efama), has dubbed the European Commission’s proposals on regulating alternative investment managers “hasty” and “political”.
Speaking at a press conference in London today, De Proft said political pressures had warped the Alternative Investment Fund Managers (AIFM) Directive from its initial conception.
“The principles were alright and generally well received during the first discussions,” he said. “Originally what was a good idea, when it was on the table, became the result of political discussion and the end result wasn’t what had been put in front of us.”
The Directive’s release in March took many people involved in the discussions, including Efama, by surprise. De Proft said the lack of proper consultation and hasty drafting has meant that the current proposals are incoherent with existing Ucits and MiFID regulations, and would force many funds out of the market altogether.
“I call it a camel,” he said. “A camel is a horse that’s been through a cabinet meeting—it’s completely different.”
De Proft said Efama plans to continue its lobbying efforts to address its concerns while the Directive remains under debate at the Commission, and said he is hopeful that a resolution can be reached.