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News release


11 September, 2009

City warns against ‘narrowly protectionist’ EU AIFM Directive

Stuart Fraser, Policy Chairman for the City of London Corporation, will today warn that the EU Commission’s AIFM Directive – currently under consideration in the European Parliament – is narrowly protectionist and risks blunting economic recovery throughout the EU.

Outlining the City of London Corporation’s position at an event organised in partnership with Policy Exchange and Open Europe, Stuart Fraser said:

“We have a number of major concerns about this directive: it is narrowly protectionist, it fails to take account of the global AIFM market and, if it goes ahead unchanged, it will cause serious damage to an important EU industry.

“AIFMs did not cause the current financial crisis, nor do they pose systemic risks. If we unilaterally decide to impose unnecessary burdens on AIFMs operating in EU markets we risk blunting the economic recovery right across the European Union.”

Stuart Fraser’s comments will come as part of a jointly-organised event to discuss the EU Commission’s AIFM Directive. It is being hosted at the City of London Corporation’s Guildhall, where the G20 finance ministers met last week to prepare for the leaders' summit in Pittsburgh.

Following Stuart Fraser’s opening speech, a key promoter of the Directive and President of the PES Poul Nyrup Rasmussen, Financial Services Secretary to the Treasury Lord Myners, Head of Alternatives at Blackrock Douglas Shaw and Managing Partner, Buyouts at 3i Jonathan Russell, will outline their thoughts on the AIFM Directive and its impact on the UK Hedge Fund and Private Equity industries.

Speaking about the importance of today’s seminar, Stuart Fraser added:

“This is a vital issue not just for London, but for the whole of the EU. Just last week I was in Brussels with the Mayor of London Boris Johnson, for a series of meetings with MEPs and Commissioner McCreevy on this very topic.

“The EU has a vital role to play in helping sort out issues around the financial crisis and The City of London Corporation is committed to working in detail with our colleagues in Europe, and indeed across the world, to get this legislation right. That is why I visited Brussels last week and that is why we are hosting this event today.”

Ends

Notes to editors

To arrange an interview with Stuart Fraser, please get in touch with James Abbott or Sanjay Odedra using the contact details listed below.

A full transcript of Stuart Fraser’s speech is available on request.

Last week, Stuart Fraser travelled to Brussels with Boris Johnson to discuss the Commission’s Directive with a number of European politicians including EU Internal Markets and Services Commissioner Charlie McCreevy, EPP coordinator on ECON Committee Jean-Paul Gauzes, UK permanent representative to the EU Kim Darroch (Stuart Fraser only) and a number of London’s MEPs.

About the City of London: The City of London Corporation supports and promotes wholesale financial services and business. It also provides local government and police services for workers, residents and visitors to London’s Square Mile business district and also provides valued services to wider London and the nation as a whole including: Guildhall Art Gallery, Barbican Centre, Central Criminal Court at Old Bailey, 4,240 hectares of open space three wholesale food markets and acts as London’s Port Health Authority.

About Stuart Fraser: Stuart Fraser is Chairman of the Policy and Resources Committee of the City of London Corporation

Press contact

James Abbott
Tel: 020 7332 1754
Mob: 07831 543 188
Email: james.abbott@cityoflondon.gov.uk


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