In Europe, the text of the Alternative Investment Fund Managers directive has been agreed by finance ministers after a long period of lobbying by the industry as well as political posturing driven by public disquiet at the high salaries paid to fund managers.
The directive is now in the European Parliament's hands and, if approved, it will give national regulators and a new pan-European body, the European Securities and Markets Authority, powers to limit the leverage used by funds in the interest of containing systemic risk. The new rules would also require a 'passport' to operate in the EU by 2013 (which is when the directive is likely to be enacted) for funds based in the 27-nation bloc, and by 2015 for all other funds.
