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AIFM directive to trigger systemic failure, says FMLC
Posted: 8 February 2010
The Bank of England's Financial Markets Law Committee (FMLC), which was set up to monitor the progress of AIFM, has said that the draft directive would trigger "systemic failure and widespread market disruption" if made into law. The FMLC also said that if the AIFM directive is implemented in its current form, it would be unworkable and would "create significant legal uncertainty.
"The inconsistencies and inherent conflicts between the [European] Commission's proposal and existing financial services directives, which create legal uncertainty as to the general application of Community legislation," commented the FMLC. "[We are] aware that a number of other ambiguities and uncertainties have been identified in submissions by other parties."
The committee, who also spoke with several other representatives from the fund management industry, said its concerns are "an infinite number of legal uncertainty issues."