Alternative Investment Fund Managers Directive agreed by EU Finance Ministers

European Union economic affairs and finance ministers have reached agreement on the controversial proposed Directive on Alternative Investment Fund Managers, raising the prospect that the legislation could be finalised by a vote in the European Parliament next month.

Of key interest to the Isle of Man fund industry, the latest agreement would allow non-EU managers and funds to obtain the same pan-European marketing ‘passport’ as their European-based counterparts two years after the directive comes into force, which is likely to be in 2013. Furthermore, the current country-by-country private placement marketing arrangements will remain applicable for at least five years after the Directive comes into force, but will eventually be abolished once the passport system is adjudged to be operating satisfactorily.

It is understood that the draft Directive will be considered at a trialogue meeting of representatives of EU member states, the European Parliament and the European Commission. If, as expected, it is approved, the legislation will go to a full session of the Parliament for approval at first reading in early November.

The Financial Supervision Commission (FSC) has been monitoring the progress and content of the Directive closely and will be actively working with the Island’s Funds Development Group in developing a funds offering which meets the access requirements proposed in the Directive. The Funds Development Group was established with membership from the Fund Management Association, the funds industry, Isle of Man Government and the FSC.