SFE AND SCOTTISH POLITICIANS CALL FOR CHANGES TO EU LEGISLATION
January 12, 2010
Scottish Financial Enterprise has this week called for specific amendments to a key piece of EU legislation ahead of a deadline of 21 January 2010.
The industry body's position has been backed by politicians from across the political spectrum in Scotland, with the issue due to be debated at Holyrood on Wednesday 13 January 2010, at a private member's debate initiated by David Whitton MSP.
The AIFM Directive was published in April last year, and was aimed at tightening regulation on investment funds, particularly hedge funds.
The proposals instead are so widely defined that they would cover a much broader than intended range of companies, and in so doing, fail to take account of regulation that is already in place for many of them.
If unamended, the Directive could have a serious negative impact on Scotland's investment management sector, one of the stronger parts of the country's financial services industry.
It would affect the industry's customers - savers, pension holders and investors. And it would impose restriction on Scotland doing business with Asia, at a time when Asia is universally acknowledged as one of our strongest competitors.
Owen Kelly, chief executive of Scottish Financial Enterprise, said:
" Since the draft Directive was published it has been heavily criticised, particularly by the UK financial services industry, due to our specialism in this area. While it would have a negative impact in the City, it could do even more damage in Scotland because we have a particular strength and expertise in investment management. It is not better regulation - just more, overlapping, regulation that would bring restrictions without benefits.
" SFE has considered the Directive in great detail and submitted specific, line-by-line changes, ahead of the imminent deadline. I am very pleased that we have had support from across the political spectrum - with Labour, SNP, Conservative and Liberal Democrat politicians supporting our industry position. They all understand the potential impact on our industry, and on Scotland's economy."
Notes to editors
- 1. The Alternative Investment Managers Directive was published on 29 April 2009. The deadline to present amendments to the Directive is 21 January 2010.
- 2. Scottish Government Finance Secretary John Swinney has written to the EU voicing his concerns on the AIFM Directive. Gavin Brown MSP, Conservative, and Jeremy Purvis, MSP, Liberal Democrat, also back calls for amendments. Catherine Stihler, MEP, a member of the committee considering the amendments, has also discussed the Directive and its implications with the industry in Scotland.
- 3. SFE's detailed response is available here.
0131 247 7700
12 January, 2010
