Alternative Investment Funds (Directive)
In the end there seemed to be too much political pressure. Shortly before the EU-Elections the Commissioner for the Single Market McCreevy presented a proposal for the regulation of alternative investment funds (AIF), in particular of hedge funds and private equity funds.
Disclosure obligations for AIF managers who revert to the use of leverage to a high degree enable authorities to better monitor possible risks to the stability of financial markets. Upper limits to the level of leverage and minimum own fund requirements are not necessary. Requirements as to the conduct of AIF, which do not employ leverage, or do so to a very small degree and invest in relatively illiquid assets, are dispensable. An international register on the granting of credits by banks to AIF is necessary.