ACTION GROUPS

From a regulatory prespective, microfinance investment vehicles (MIVs) were until recently, considered the equivalent of hedge funds or private equity funds. However, the latter have very different motives, management methods and risk profiles to MIVs.

The Legal Framework for Microfinance Funds in Europe will focus its work on proposing solutions for a well adapted regulatory framework within the European directive for Alternative Investment Fund Managers (AIFM).

Action group outputs for 2010

1. Workshop at the European Microfinance Week, 30th November - 1st December to raise awareness among microfinance actors
2. Amendment to the intial Alternative Investment Fund Managers directive proposing solutions for the existing regulatory vacuum for microfinance funds.

The amendment's objectives and solutions will focus on:

• giving a clear definition of microfinance in both developing and developed countries
• providing a regulatory framework for microfinance managers to comply with the AIFM directive
• applying the principle of proportionality for micofinance investments (constraints are proportional to the size of the assets under management)
• introducing a more specific regulation in the next UCITS V directive

Participants

 BNP Paribas, Incofin, Credit Agricole, Credit Suisse, Blueorchard, responsAbility