SCOTLAND’S FINANCIAL SERVICES INDUSTRY CALLS FOR CURB ON EU LEGISLATION
May 13, 2010
SCOTLAND'S FINANCIAL SERVICES INDUSTRY CALLS FOR CURB ON EU LEGISLATION
Scottish Financial Enterprise has written today to EU Commissioner Michel Barnier and to the new UK Government calling for action in Brussels to change the controversial Alternative Fund Management (AIFM) Directive.
The main UK political parties have been united in opposing the legislation as originally drafted. Revised clauses will reach a critical stage next week as it is discussed in the European Parliament and the Council - on 17 and 18 May.
The Directive has been widely criticised for offering more regulation, not better regulation and for meaning extra costs for investors. If passed in its current form as suggested by the Council of Ministers, it could be particularly damaging to the investment trust sector, a long-established part of Scotland's financial services industry. It would also reduce investment in small and medium sized businesses, could take financial business away from the UK without good cause, and have a detrimental effect on jobs and relations with non-EU countries.
Owen Kelly, chief executive of Scottish Financial Enterprise, said: "We are particularly concerned to ensure that, as the Directive moves towards finalisation, the text reflects the real needs of investors and does not inadvertently cause long term consumer detriment or confusion.
" Next week's meetings are critical. We welcome the cross-party pre-Election commitment to this issue, and we hope that next week the new Government will do all it can to support the UK industry's position and to call for change."
A copy of the full letter is available on the SFE website.
Mary Mowat
Scottish Financial Enterprise
031 247 7700
