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The Directive on Alternative Investment Fund Managers (AIFMD), for the first time introducing EU rules on hedge funds and private equity funds, was finally approved by the European Parliament after long and tough tripartite negotiations between the three EU institutions, the Council, the Commission and the Parliament.



Among the important steps forward are the rules on private equity and asset stripping, which hinders exploitation of target companies by private equity funds. Under the new rules, capital has to stay in the company for at least two years before it is taken out. Furthermore, in case of a take over of a target company, the employees will receive more information than is the case now.



UNI Europa Regional Secretary, Bernadette Ségol said: "It is true that we had preferred the rules on employees' right to information and consultation in case of take over had been fully aligned with the rules in the Takeovers Directive. But this proved legally very difficult, and I think we can be happy with what we have got as a start". She continued: "We have also obtained a better protection of target companies against exploitation by the funds, and this is certainly a step in the right direction, though it could of course have gone much further".



Other features of the new rules are more transparency in terms of disclosure requirements and more stability in terms of capital requirements to the funds managers, which effectively means the funds. After 2018, the Directive also introduces a so-called EU passport for funds outside the EU, which allows them to register only one time and not with the individual member states. Registration can only happen if the fund complies with the rules of the Directive. The new EU Supervisisory Authority for Securities and Markets (ESMA) will be responsible for the registration and for the supervision of funds operating in the EU. For this purpose, the Authority has been granted more power and competences to carry out these tasks.



The rules are to be implemented by 2013.