Aifm directive
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COMMISSION OF THE EUROPEAN COMMUNITIES
Brussels, 30.4.2009 COM(2009) 207 final 2009/0064 (COD)
Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on Alternative Investment Fund Managers and amending Directives 2004/39/EC and 2009/…/EC
{SEC(2009)576} {SEC(2009)577}
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EXPLANATORY MEMORANDUM 1. 1.1. CONTEXT OF THE PROPOSAL Context, grounds for, and objectives of the proposal
The financial crisis has exposed a series of vulnerabilities in the global financial system. It has highlighted how risks crystallising in one sector can be transmitted rapidly around the financial system, with serious repercussions for all financial market participants and for the stability of the underlying markets. The present proposal forms part of an ambitious Commission programme to extend appropriate regulation and oversight to all actors and activities that embed significant risks1. The proposed legislation will introduce harmonised requirements for entities engaged in the management and administration of alternative investment funds (AIFM). The need for closer regulatory engagement with this sector has been highlighted by the European Parliament2 and by the High-Level Group on Financial Supervision chaired by Jacques de Larosière3. It is also the subject of ongoing discussion at international level, for example through the work of the G20, IOSCO and the Financial Stability Forum. The funds in question are defined as all funds that are not regulated under the UCITS Directive4. Around €2 trillion in assets are currently managed by AIFM employing a variety of investment techniques, investing in different asset markets and catering to different investor populations. The sector includes hedge funds and private equity, as well as real estate funds, commodity funds, infrastructure funds and other types of institutional fund. The financial crisis has underlined the extent to which AIFM are vulnerable to a wide range of risks. These