Hedge funds and private equity need transparency, not stifling

Impact of EU directive will be felt by small businesses, consumers and pension funds, Conservatives warn

Brussels, 2nd September 2009 -- Greater transparency and safeguards may be required of investment funds but the EU's current proposal for a one-size-fits-all draconian directive will harm the entire European economy, Kay Swinburne MEP and Vicky Ford MEP, will warn today as the European Parliament begins debating the directive.

The parliament's Economic and Financial Affairs committee (ECON) will meet with Anders Borg, Swedish Minister for Finance, and it will discuss the financial crisis with members of the US Congress.

Meanwhile the Mayor of London, Boris Johnson, will be in Brussels meeting British MEPs on ECON and Commissioner McCreevy.

Kay Swinburne MEP, ECON coordinator for the European Conservatives and Reformists Group, said:

"The AIFM Directive has laudable intentions but it has not thought through the full consequences of this knee-jerk response to the financial crisis.

"Rebuilding our economy post credit crunch is not easy but we can not afford for European businesses or investors to be put at a competitive disadvantage. Of course there is a need for better regulation of financial services but this directive in its current form has the potential to reduce the availability of risk capital and seed finance to European businesses at a time when our economies need it most."

Vicky Ford MEP, British Conservative spokesman on ECON, who will be hosting Boris Johnson's visit to the Parliament, said:

"It is important that we work with other European Countries and across the world to secure better regulation of global financial services. There is a myth that this directive only has implications for financial institutions operating in the City of London - that is simply not true. The devil is in the detail and the impact on the real economy across Europe is far reaching.

"We have been given many examples of how European companies, large and small, will be put at a competitive disadvantage when trying to finance their futures. People trying to rebuild their savings or pensions will find their options to invest both within the EU or overseas are severely curtailed.

"As it stands the current directive would hand a major victory to the financial centres outside the European Union."

"Today the Mayor of London will meet with UK MEPS from across all political parties and engage in the debate on this issue."

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