Frustration levels are rising among members of the European Parliament as they begin debating some 1,700 proposed amendments to the Alternative Investment Fund Managers directive, with some even calling for the directive to be scrapped altogether, according to several sources close to the debate.
First proposed last year to better regulate alternative investments in the European Union, the directive already has spurred seven different versions and what Jean-Paul Gauzes — rapporteur for the European Parliament's Committee on Economic and Monetary Affairs in Brussels — dubbed a “forest's worth” of proposed amendments.
“Europe has backed itself into a corner,” said Darren Fox, partner specializing in European financial regulations at London-based law firm Simmons & Simmons. Officials are left with the difficult choice of either “effectively cutting off access to EU investors of the (alternative investment) funds outside of the EU, or alternatively, creating an unleveled playing field for funds within the EU compared to funds outside of the EU.”
“One of the solutions is to tear up the whole thing,” Mr. Fox added, “or hope that it never becomes law.” — Thao Hua