Eversheds: UK “will not get its way” on all of EU hedge fund rules

The UK is unlikely to have all its concerns addressed over the proposed EU Alternative Investment Fund Management (AIFM) directive, according to international law firm Eversheds.

Today (8^th March) marks the start of the final stage for British diplomats to attempt to water down the AIFM, which has been criticised by many in the hedge fund and private equity business, who fear that it could lead to funds relocating to non-EU countries.

UK participants have been particularly vocal in attacking the directive, which they fear could drive funds out of the City of London.

Eversheds partner Ronald Paterson commented: “To achieve a blocking minority in the council where voting is on a qualified majority basis and each member state's vote is weighted in proportion to its population, the UK needs support from at least three other large countries or quite a few smaller ones.

“Furthermore, in certain key areas, there are still member states which are pressing for the directive to be tightened up. So it is clear that the UK will not get its way on all the outstanding issues but there still seems to be a drive to finalise the directive by June or July and that creates an opportunity for the UK to extract concessions.”