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City News Desk
The City of London is "safe for now" from damaging regulation proposed by Brussels, was the verdict from leading figures in the capitals financial services industry following a high level breakfast meeting with the newly appointed EU Commissioner for the internal market Michel Barnier.
Syed Kamall MEP for London, who has been lobbying Brussels to rethink a proposed directive, the so called Alternative Investment Fund Managers directive or AIFM, which could see new super regulators established, investment funds from outside the EU restricted from investing in Europe, and more regulation in place to eradicate the so called "vulture funds" from the EU.
Syed Kamall MEP for London said:
"Mr Barnier recognises the role of London as a global financial centre and an asset to the European Union, and it is important that London keeps playing a major role in the European economy".
At a breakfast meeting organised by Syed Kamall MEP for London, leading hedge funds and private equity firms met with EU Commissioner Michel Barnier to air some of their concerns which included too much regulation will slow down the capital into the EU, and may speed up the rate of funds leaving the EU.
London is the home of 80% of the hedge funds in the European Union, employing many thousands and generating billions for the economy of the capital and the EU, the head of the Alternative Investment Management Association Andrew Baker said:
"We are extremely grateful Mr Barnier came to London, and met with us first, recognising the importance of a strong City of London to the European economy. There was a commitment to continue the dialogue to address some of the concerns that still remain, like third country funds able to have access clean access to European investors; technical issues to deal with like depositories".
The head of the British Venture Capital Association Simon Walker said:
"London is a magnate for private equity internationally, with 60% of private equity in Europe done through London. By restricting third countries or non-EU funds, more than 50% of private equity funds in the UK come from non-EU sources. Discriminating against funds from the US or the Channel Islands is extraordinarily serious, and will be deeply damaging."
In the forthcoming months it is expected that more representations from the City of London will be made to Mr Barnier before the anticipated ratification of the AIFM directive in late July after 1669 amendments have been evaluated. photo credit: London Daily News L-R Simon Walker President BVCA, Syed Kamall MEP for London, Andrew Baker AIMA
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