Brussels, 12/11/2009 (Agence Europe) - The Swedish Presidency proposal for a compromise on the draft directive on alternative investment funds has come in for criticism from the Greens/EFA Group in the European Parliament. Deeming the text to be in total contradiction with the resolutions adopted by the last G20 meetings, French MEP Pascal Canfin regrets that “the Presidency is content to endorse the current situation and thereby accept that funds are managed from inside the EU but based in tax havens, such as the Cayman Islands”. According to a press release, the compromise proposed by the Swedish Presidency does not follow the Commission proposal to bar access to the European market to funds established in countries which refuse to exchange tax information on the basis of Article 26 of the OECD tax convention. The compromise also weakens protection afforded to European investors by taking away the principle of the independent evaluator and limiting depository liability. Earlier in the week, members of the S&D Group expressed their concern at this turn in discussions, stating that they would vote against any agreement reached on the cheap. The Swedish Presidency is hoping for agreement before the end of the year. (A.B./transl.rt)