According to press reports, Brown called for the controversial Alternative Investment Fund Managers directive to be excluded from the agenda at yesterday’s gathering of finance ministers from the 27 EU states. It was likely that Britain would face a defeat regarding the directive with France leading a number of countries looking to bring in tougher regulations of hedge fund and private equity.
As a result, it has now been put on hold until after the general election.
However, reports suggest that Spain, holder of the rotating European Union presidency, intends to secure a deal on proposed legislation on the alternative investments sector before its term ends in June.
In recent months, the FSA has expressed concern about aspects of the AIFM directive, with FSA director Dan Waters warning that parts of the directive could be viewed as a protectionist attempt to protect EU funds from competition from outside Europe.
Last year, the IMA and NAPF expressed concerns to Money Marketing that the directive could lead to heavy restrictions in investing in emerging markets funds.