Luxembourg, 19/10/2010 (Agence Europe) - “We have a unanimous agreement” on the draft directive on alternative fund managers, said a delighted Belgian Finance Minister Didier Reynders after the ECOFIN Council on Tuesday 19 October. “This is a very important step,” insofar as this industry, which some days accounts for almost half of al financial transactions, will, for the first time, be subject to European legislation, European Internal Market Commissioner Michel Barnier added. “It is not the final step” as the talks still have to be finalised with the European Parliament (EP), he added. An inter-institutional meeting could still take place this week. “We hope that the text that finally comes out of these negotiations will be put to the vote for approval during the plenary session at the start of November,” Jean-Paul Gauzes (EPP, France), EP rapporteur, said. This agreement will also let the EU show the G20 Summit that it has achieved tangible results on financial regulation, along with what has been achieved in financial supervision.
The agreement in principle, reached after almost 70 draft compromises put by the Belgian Presidency, provides for the granting of European approval for managers and alternative funds wishing to market their products in the EU, whether they are established in the EU or in a third country. In line with French requests, the new European Securities Markets Authority (ESMA) will have a central role as part of the powers provided for in the supervision package. A transition period is planned and comprises the following three stages: - national private placement systems will continue to apply until 2015; - between 2015 and 2018, third country funds will be able either to obtain a European authorisation granted by the reference country supervisor or continue to be authorised on a case-by-case basis at national level if they comply with the new directive; - after 2018, only the rules on European authorisation will apply. Other rules will enhance “transparency, retention of securities, risk management and leverage,” Barnier stated. (M.B./transl.rt)