Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the eventual cost to HM Treasury of the European Union's proposed Alternative Investment Fund Managers' Directive should it be enforced in the United Kingdom.

The Alternative Investment Fund Managers Directive (AIFMD) entered into force on 22 July 2013.

Costs or benefits to the Exchequer as a result of the AIFMD will result from commercial decisions that have yet to be taken by investment management firms as to whether the regulatory cost of doing business in the UK against other jurisdictions leads them to increase or decrease their activity here. Therefore no reliable assessment can be made at this time. Nevertheless the Government will continue to monitor the effects of AIFMD on the UK investment management industry.

The Government has worked closely with industry to ensure that the requirements of AIFMD have been applied in as proportionate manner as possible so as to cause minimal disruption to UK firms and to maintain the UK's competitive status as a global fund management centre.

An impact assessment estimating the costs to UK business was published alongside the implementing regulations. It is publically available on the www.legislation.gov.uk website.