And just to make the FSA’s views clear, Dan Waters’ speech the other day – which reminded us that the FSA regulates around 80% of the hedge fund management industry in Europe – made interesting reading.
Following praise of sorts for the progress made on the proposed Directive under the Czech and Swedish presidencies, when making comments relating to the changes under the new Spanish presidency he has used ‘unwelcome’ three times. Dan Waters focuses in particular on third country funds and managers.
Article 35 has been reinstated in the latest version, although with revised wordage. Under this, Member States can allow the marketing of non-EU established AIFs by non-EU AIFMs on their territory provided that certain requirements are met, including ‘appropriate cooperation agreements’ ensuring an efficient exchange of information being in place between the competent authorities of the AIFM and the Member State; the content of the cooperation agreements have not yet been defined.
The speech ends with reference to the FSA’s report on hedge funds and systemic risk, which we commented upon above.