Monday June 29, 2009.
The BVCA today welcomed the recent comments from Jacques de Larosière, the author of the EU's report on a financial regulatory system and Sir James Sasson, author of a major report on financial regulatory reform for the UK Shadow Chancellor, and, separately, those of Dan Waters, FSA asset management sector leader. De Larosière declared last week that "private equity should be kept out of heavy regulation" and Sir James added "it is hard to find a kind word to say about a directive so disproportionate in scope, so protectionist in its effect and so poorly drafted". At a different event, Waters stated "The impact analysis, performed at a high level on the back of the early general thoughts, could not possibly have addressed the myriad detailed impacts of the sweeping scope of this directive".
Responding to their comments, Simon Walker, Chief Executive of the British Private Equity and Venture Capital Association, said:
"These are merely the latest distinguished experts to agree that the Directive as its stands is fundamentally flawed and would do immense damage to private equity at precisely the moment when it could and should be at the centre of a European economic recovery strategy. The clear logic of these remarks is that private equity should be excluded from the provisions of this Directive and that is what we call on European officials and politicians to do."
The BVCA also endorsed the European Private Equity and Venture Capital Industry response to the proposed Directive on Alternative Investment Fund Managers (attached). Reacting to the analysis, Simon Walker observed.
"This assessment lays out in stark and detailed terms the inadequacies of the proposed Directive and the harm that it would do to private equity houses, the many portfolio companies under their control and ultimately the employees and customers of those companies. Sweden, when it assumes the EU presidency and hence the leadership of the European Council on Wednesday and the new European Parliament, when it convenes shortly, has the chance to recast this Directive radically and we urge them to seize that opportunity."
FOR FURTHER INFORMATION PLEASE CONTACT
Tim Hames, BVCA 0207 025 2968/07721 508082
Nathan Williams, BVCA 0207 025 2967
Notes to Editors
1. The British Private Equity and Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has over 450 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers.
