The Alternative Investment Fund Managers Directive COM (2009) 20 is a proposed European Union law which will put hedge funds and private equity funds under the supervision of an EU regulatory body. These kinds of business vehicle have not been subject to the same rules to protect the investing public as mutual and pension funds. Lack of financial regulation is widely seen to have contributed to the severity of the global financial crisis. The European Parliament voted through a final text of the Directive on 11 November 2010.[1]
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The AIFMD proposal includes the following reforms.
The right-wing think tank Open Europe has estimated that the hedge fund and private equity industry contribute €9.2 billion in tax revenues to the EU economy every year, which would come under threat if the EU's AIFM directive would have been passed in its original flawed form.[2]