Industry comments on ESMA's AIFMD advice

The proposals have been met with some degree of satisfaction by the industry. "In contrast to the rushed birth of this Directive, we have been encouraged by ESMA's diligent and professional approach to this file, both by giving occasion for industry input, as well as providing due respect to the role of national regulators," noted EVCA chairman Karsten Langer.

Langer continued: "We are also encouraged by ESMA's acknowledgement of the need to tailor the rules of this broad-reaching Directive, to ensure it achieves policy goals without saddling the economy with red tape and unnecessary burden, in particular at a time when the positive influence of private equity and venture capital on economic growth is needed more than ever."

SJ Berwin also reacted positively to ESMA moving from using "net asset value" as a way to define assets under management to total assets calculated by reference to the "latest available asset value calculation" for each asset. "The outcome here seems broadly satisfactory for the private equity industry," the law firm said in a statement. SJ Berwin concluded by stating: "Overall, as expected, there has been progress in some areas but there are others where further work is needed."

Depositories in particular are still a sore point. Said Langer: "There remain areas of concern, in particular around the role of depositaries, whose interference in the investment decision would be of concern to fund managers and investors alike, by upsetting the tight alignment of interests which already exists in our industry."

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• Topics
• Regulation
• EVCA
• SJ Berwin