10 Feb 2010
The Bank of England’s Financial Markets Law Committee has concluded that the draft AIFM Directive:
o would trigger “systemic failure and widespread market disruption” is made law.
o is unworkable and would “create significant legal uncertainty” if implemented in its present form.
Additionally the FMLC wrote that:
o “the inconsistencies and inherent conflicts between the Commission’s proposal and existing financial services directives which create legal uncertainty as to the general application of Community legislation”
o it was “aware that a number of other ambiguities and uncertainties have been identified in submissions by other parties”
The committee also said that it had spoken to a number of representatives of the fund management industry, who raised “an infinite number of legal uncertainty issues”.
The FMLC was set up to monitor the progress of the draft directive.
To view FMLC's report in full, please click here.
o would trigger “systemic failure and widespread market disruption” is made law.
o is unworkable and would “create significant legal uncertainty” if implemented in its present form.
Additionally the FMLC wrote that:
o “the inconsistencies and inherent conflicts between the Commission’s proposal and existing financial services directives which create legal uncertainty as to the general application of Community legislation”
o it was “aware that a number of other ambiguities and uncertainties have been identified in submissions by other parties”
The committee also said that it had spoken to a number of representatives of the fund management industry, who raised “an infinite number of legal uncertainty issues”.
The FMLC was set up to monitor the progress of the draft directive.
To view FMLC's report in full, please click here.
