19 Mar 2010
The AIFMD ECOFIN deadlock presents a significant opportunity for the European asset management industry to create additional pressure for consideration of further changes to the current proposals. The time may also now be right to reconsider the objective of adopting the Directive in one reading, to allow more time to thoroughly assess its impact on the complex alternative investment funds industry.
The delay in Council, as a result of the AIFMD being dropped from the agenda of the EcoFIN Council on 16th March, does not mean that the whole process is stalled, says PwC. Contrary to some reports, the Spanish Presidency has indicated that it intends to continue the debate during the remainder of its term and discussions will also continue in the European Parliament.
Given the complexities of the AIFMD debate, and the risk that views may now have become too entrenched, additional breathing space should be welcomed by the industry and the European establishment should now look to reconsider the objective of adopting this Directive in one reading.
James Greig, partner, PricewaterhouseCoopers Legal LLP, said: "Anyone regarding this as anything more than just a short breathing space needs to think again. There is too much political capital invested for the AIFMD to be pushed into the long grass for very long. However this pause does present a significant unexpected opportunity for the industry to voice its concerns and continue to seek changes to make the Directive do its job in a proportionate way".
The delay in Council, as a result of the AIFMD being dropped from the agenda of the EcoFIN Council on 16th March, does not mean that the whole process is stalled, says PwC. Contrary to some reports, the Spanish Presidency has indicated that it intends to continue the debate during the remainder of its term and discussions will also continue in the European Parliament.
Given the complexities of the AIFMD debate, and the risk that views may now have become too entrenched, additional breathing space should be welcomed by the industry and the European establishment should now look to reconsider the objective of adopting this Directive in one reading.
James Greig, partner, PricewaterhouseCoopers Legal LLP, said: "Now might be the moment to accept a changed timetable and process. A properly considered second reading would permit more careful deliberation to ensure that the many diverse views expressed by the Council, Parliament, the Commission and industry are fully taken into consideration. This would only add a few months onto the overall timetable but may ensure that the final legislation is much more fit for purpose."
