Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context

Question 42: To ask the Minister for Finance if he will report on the progress of the Alternative Investment Fund Managers Directive; and if he will make a statement on the matter. [29680/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Alternative Investment Fund Managers (AIFM) Directive proposal remains the subject of intense negotiation between the European Council, the European Parliament and the European Commission. Presently, it is envisaged that the European Parliament will vote on a compromise proposal on 18 October at its plenary meeting. Ireland is working constructively in this negotiation process.

By way of background, the proposed Directive has two main aims to establish a secure and harmonised EU framework for monitoring and supervising the risks that AIFMs pose to their investors, counterparties, other financial market participants and to financial stability; and to permit, subject to compliance to strict requirements, AIFMs to provide services and market their funds across the EU's internal market (the so-called "passport").

AIFMs manage hedge funds and private equity funds as well as commodity funds, real estate funds and infrastructure funds. The proposal is essentially aimed at the managers of any investment fund not covered of the Undertakings for Collective Investments in Transferable Securities or UCITS Directive. Sovereign wealth funds are not included within the scope of the proposal.

The proposal is part of the EU's efforts to reform the financial regulation environment in Europe aimed at ensuring that the recent economic and financial turmoil is not repeated.