UK and French ministers to discuss AIFM Directive deadlock

UK finance minister George Osborne and his French counterpart, Christine Lagarde, are expected to hold discussions next week (between 18 October and 23 October) on the European Union’s Directive on Alternative Investment Fund Managers ahead of a full meeting of the EU Council of economic affairs and finance ministers.
Talks in Brussels on Wednesday between member states’ ambassadors to the EU failed to resolve continuing differences over the rules governing access to EU markets for funds and managers based outside the union, according to media reports.
In a bid to break the impasse negotiators suggested options such as a delay in the implementation of the ‘passport’ that would allow the marketing to member states of non-EU funds whose managers comply with the directive.
However, the UK is reported to have rejected a proposed amendment that would allow individual member states to bar funds from their territory even if they have an EU passport. The continuing deadlock makes it increasingly unlikely that the directive will be ready to be submitted on schedule to the European Parliament for a formal first reading next week.