Newsletter-21

247 CAPITAL MARKETS LAW vide advice 11 . The Directive also includes reforms on delegation, the appointment of independent valuers and custodians, leverage and risk management, and transparency and marketing, and establishes a legal framework for the authorization, supervision and oversight of manag- ers of a range of AIFs, including hedge funds and private equity 12 . The AIFMD’s most substantial aim is to achieve greater transparency and stability to the manner in which these kinds of funds operate by monitoring the risks that AIFMs pose to their investors, counterparties and other financial market participants and to financial stability, and permitting AIFMs to provide services and market their funds across the internal market, subject to compliance with strict requirements 13 . José Manuel Barroso, holding the post as the President of the Eu- ropean Commission at the time, stated his opinion in 2010 regarding the then upcoming adoption of the Directive as follows: “The adoption of the directive means that hedge funds and private equity will no longer operate in a regulatory void outside the scope of supervisors. The new regime brings transparency and security to the way these funds are managed and operate, which adds to the overall stability of our financial system. 14 ” 29/12/2016 through Lexis Library database). 11 FSA Materials: Reports and Occasional Papers (Archive 31/3/2013) > Financial Services Authority Anual Report 2010/11 > Section 3 Delivering market con- fidence > Over-the-counter (OTC) derivative markets > Alternative Investment Fund Managers (AIFM) Directive. 12 Hedge funds and private equity funds — rules for managers http://eur-lex.europa . eu/legal-content/EN/LSU/?uri=celex:32011L0061 (Accessed on 28/12/2016) (Eur-Lex) 13 Alternative Investment Fund Managers Directive (AIFMD)—timeline Lexis PSL: Financial Services >Financial Services regulation >getting started; EU FS regula- tion—timelines >Alternative Investment Fund Managers Directive (AIFMD)— timeline. 14 “European Commission statement at the occasion of the European Parliament vote on the directive on hedge funds and private equity” dated 11 November 2010 and numbered MEMO/10/573 http://europa.eu/rapid/press-release_MEMO-10- 573_en.htm?locale=en (Accessed on 28/12/2016).