Haynes Boone Partner James Tinworth was quoted in Citywire on the U.K.’s Financial Conduct Authority becoming the latest financial watchdog to want to launch a review into private markets.
Read an excerpt from the Citywire article below:
Currently in the UK, alternative investment funds are still regulated under the Alternative Investment Fund Managers Directive (AIFMD), which has put the responsibility for valuations on the manager.
However, in the opinion of James Tinworth, a partner at law firm Haynes Boone, the AIFMD rules have made it difficult for managers to delegate the valuation function to third-party independent valuers.
‘Because of the uncertainty, it put people off of being external valuers. In private assets there is always going to be an element of subjectivity… and they will be liable for negligent valuations,’ said Tinworth.
He added that it might be worth considering a break away from AIFMD’s valuation rules as they could be preventing a potential solution and keeping independent valuation experts from getting involved.
To read the full article from Citywire, click here.
