An unjustified development

Brussels. What a development! Last Friday, the German Federal Ministry of Finance presented the long-awaited draft for the implementation of the European Directive on Alternative Investment Fund Managers. The draft caused much concern among both open and closed-ended funds last week, which in the past have often provided hotel finance. The fund industry has reached a turning point. The draft, if it were to be approved, would prohibit the inception of new open-ended real estate funds. To date, though, not all points covered by the draft are clear. Many points appear ill-tailored. The draft will therefore need considerable reshaping. And much is likely to be lost along the way. After all, it not only seeks to regulate the managers, but also the products themselves.