The House of Lords EU Committee has written to Financial Services Secretary Lord Myners to express its concerns over “flawed” EU investment proposals.
The committee says the EU Commission's proposed Alternative Investment Fund Managers Directive risks seriously damaging the European economy, unless it allows the marketing of non-EU funds within the region and also permits EU funds to invest outside the area.
It also argues co-ordination with the US regulatory regime is essential if the EU alternative investment fund industry is to compete.
Chairman of the House of Lords EU Sub-Committee on Economic and Financial Affairs Baroness Cohen, says: "Alternative investment funds are an important part of the economy and while they should be regulated properly, they must not be driven out of the EU.
"We will keep the AIFMD under scrutiny until we are convinced it has been improved to be in the best interests of the UK and EU economy, and of EU investors.
"We will be publishing a full report in the new year, which will take account of developments and will ensure that the Government are updated on the Committee's views."
