British Lords Join In Savaging Proposed European Hedge Fund Rules

Feb 10 2010 | 12:00pm ET

The U.K.’s House of Lords is urging the British government to veto proposed strict new alternative investment regulations currently being debated by the European Parliament.

The House of Lords European Union Committee said the U.K. “should not agree” to the Alternative Investment Fund Managers directive unless it is substantially altered. The proposed rules would impose strict new reporting and custody requirements on hedge funds and private equity funds, as well as possible leverage limits.

But, as written by the European Commission, the rules would sap European competitiveness, the Lords complain. The U.K. should not accede to the proposal unless it is made “compatible with equivalent legislation with regulatory regimes in third countries and in particular in the United States.”

“The U.K. government should do everything it can to ensure that the final proposals that emerge in the AIFM Directive do not damage the EU and U.K. economies to which the City of London makes an important contribution,” Kenneth Woolmer, a member of the Lords committee, told Bloomberg News.

The Lords report is the latest salvo attacking the proposal from across the Channel. Earlier this week, both the Bank of England and Financial Services Authority warned that the rules could have disastrous unintended consequences for European economy.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR