The European Commission has launched a public consultation seeking the views of stakeholders on how to make the EU’s Alternative Investment Fund (AIF) market more efficient, effective and competitive, while maintaining the overall stability of the EU’s financial system.
Alternative investment funds include hedge funds, private equity funds, real estate funds and a wide range of other types of funds. Managers of these funds are responsible for a high amount of investment in the EU and account for significant volumes of trading in financial markets. They contribute to building a Capital Markets Union by channeling savings to companies and projects which contribute to growth and jobs.
The Alternative Investment Managers Directive (AIFMD) establishes an EU-wide legal framework for the authorisation, supervision and oversight of these Managers. In January 2019, the Commission published a report which showed that the current rules in the AIFMD significantly contributed to creating a single market for AIFs by establishing a harmonised regulatory and supervisory framework. There are, however, some areas where these rules could be made more efficient.
The consultation therefore aims at gathering feedback with a view to improving the overall functioning and competitiveness of the EU AIF industry, contributing to a well-functioning environment for investors, and at the same time ensuring the stability of the overall financial system. It comes at a timely moment. It is part of the Commission’s ongoing efforts to further develop the Capital Markets Union (CMU) and to boost investment around Europe – which is of critical importance at this point in time, given the coronavirus crisis.
Feedback Period: 22 October 2020 – 29 January 2021
Click here to view the consultation.