FEPS answers to House of Lords Call for evidence of AIFM Directive

Preliminary comments

Although the AIFM directive addresses a number of different types of funds, the answers will focus on the two main categories, i.e. hedge funds (“HFs”) and private equity funds (“PE”).
– While “calls for evidence” are of course a useful way to collect information, the House of Lords should be wary of the fact that under standard “regulatory capture” theory, the industry which is potentially most affected by proposed regulations will commit the highest level of resources to provide lawmakers with the best crafted arguments in order to achieve the result they desire. In our case, a good example of this may be seen in the huge quantity of work recently produced by the financial industry to present its case in the most favourable light and avoid any meaningful regulation.

Read the FEPS answers to House of Lords Call for evidence of AIFM Directive, Contribution elaborated in the frame of FEPS expert group on hedge funds