Following the Alternative Investment Management Association, backing concerns that the AIFM Directive risks protectionism, Ronald Paterson, partner at international law firm Eversheds comments:

“The potential consequences of getting this directive wrong, range from the unthinkable - a trade war with the US - to the merely disastrous, such as a serious reduction in the investment opportunities and investment returns available to investing institutions in Europe, and/or a major exodus of fund management businesses and their revenues from the EU.

“AIMA, together with other trade bodies such as the Association of Investment Company and the British Private Equity & Venture Capital Association re doing an excellent job in highlighting the shortcomings of the AIFM Directive. It is crucial that European parliamentarians understand the full consequences of these proposals.”