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and transparency in a previously looselyregulated and opaque part of the market.Many managers from outside the US,especially in Europe, are likely to face doubleregulation as a result of the new measures,but this may be least of their worries. Afterwell over a year of debate, the endgameis approaching for the European Union’sAlternative Investment Fund ManagersDirective as the EU’s convoluted legislativeprocess attempts to forge a definitive textout of two (maybe three?) conflicting and insome respects incompatible draft versions.A final decision might come as soon asSeptember – but the legislators have missedplenty of deadlines already.However, while US alternative investmentfirms has long accepted the inevitability ofcoming within the regulatory ambit of theSecurities and Exchange Commission or stateregulators, their counterparts in Europe areconsiderably less sanguine about many ofthe proposals embodied in drafts of the AIFMNearly two years after the bankruptcy ofLehman Brothers brought home to theglobal financial industry the seriousness ofthe crisis that unfolded from the collapseof the US sub-prime mortgage market, theshape of the regulatory environment drawnup as a response to the past three years ofturbulence is now taking shape, for betteror worse. A major step came on July 21with the signing into US law of the Dodd-Frank Wall Street Reform and ConsumerProtection Act.For the alternative asset managementsector in particular the Dodd-Frank Act,which covers a vast swathe of financialsector activity, promises significant changesin the way firms operate and are regulated.Few of the measures have been greeted withany great enthusiasm, but by and large thereis acceptance in the US that this is the pricerequired to restore confidence in the financialindustry and that most investors supportrules designed to introduce greater oversight
European regulationholds key to futurealternatives landscape