City warns that EC directive on hedge funds will hurt EU

THECITY of London will warn today that the European Commission&rsquo;s proposed directive on alternative investment fund managers (AIFM&rsquo;s) is protectionist and risks hampering economic revival throughout the EU.<br /><br />Speaking at a conference organised jointly by Policy Exchange and Open Europe, the City&rsquo;s policy chairman Stuart Fraser will warn that an attack on the AIFM industry would be counter-productive.<br /><br />&ldquo;AIFM&rsquo;s did not cause the current crisis, nor do they pose systemic risks,&rdquo; he will say.<br /><br />&ldquo;If we unilaterally decide to impose unnecessary burdens on AIFM&rsquo;s operating in the EU markets, we risk blunting the economic recovery right across the European Union.&rdquo;<br /><br />Speakers include a key promoter of the directive and president of the Party of European Socialists Poul Nyrup Rasmussen, as well as head of alternatives at BlackRock Douglas Shaw and managing partner of buyouts at 3i, Jonathan Russell.<br /><br />City minister Lord Myners will also speak and is expected to call on the industry to engage positively with Europe to encourage a revision of the directive.