EC challenged to adopt Basel method for AIFMD leverage

Hedge funds oppose gross and commitment calculations


Methodologies used by the alternative investment fund managers directive (AIFMD) have come under fire from the hedge fund industry for overstating leverage, potentially leading to an outcome whereby regulators might place caps on its use.

Employing the method of calculating leverage devised by the Basel Committee on Banking Supervision instead would be a huge step forward, according to the Alternative Investment Management Association (Aima), which is finalising a formal submission to the Europe