The Investment Management Association has warned that unnecessary detail in the EU’s Alternative Investment Fund Managers Directive could lead to investor detriment.
The IMA says the roughly 2,000 alternative funds in the UK that will come under the AIFMD could be hampered by further rules, responding to the European Securities and Markets Authority’s call for evidence on the directive.
IMA director of authorised fund and tax Julie Patterson says: “AIF investors are active market participants. Any further measures should not cut across their ability to access the investments and strategies they desire.
“The AIFMD is already a detailed piece of legislation. We therefore urge ESMA to resist introducing further unnecessary detail into Level 2 and 3 measures, and to use directives rather than regulations at this stage.”
Level 2 of the AIFMD process is the rule-making phase.