4 February 2010
Responding to the publication of the Bank of England's Financial Markets Law Committee, BVCA Chief Executive, Simon Walker said:
"The Committee's opinion that the Directive in its current form would create "significant legal uncertainty leading potentially to systemic failure and widespread market disruption", highlights the extensive work that is still needed to the Directive. The Committee's opinion reaffirms what a host of distinguished individuals and institutions - including the European Central Bank, de Larosiere, the Turner Report and the G20- have said: that the private equity industry poses no systemic risk.
"We remain committed to working with our European partners to improve the Directive, but it is imperative that the legislation is revised to prevent widespread market disruption. It would be incredibly counter-productive for the European Union to stifle one of the very few sectors which has the proven experience and cash on hand to invest in areas of future growth".
NOTES TO EDITORS:
The Bank of England's Financial Markets Law Committee report 'AIFM Directive: Legal Risks' can be viewed at: http://www.fmlc.org/papers/Issue145Report.pdf
