Monday, 22 September 2014
Last updated 23 min ago
Feb 17 2010 | 2:05am ET
Hedge funds based outside of the European Union would be at the mercy of their local regulators under a new proposal offered by Spain.
The amendment to the EU’s Alternative Investment Managers Directive would require “appropriate cooperation agreements” between individual state regulators within the EU and regulators of other countries before hedge and private equity funds from those countries could market their wares in a European country.
The move by Spain, holders of the rotating presidency of the EU, revives part of the original directive that it had earlier excluded. That backtracking is likely to provoke objections from the U.K., home to the overwhelming majority of the European alternative investments industry.
The new Spanish proposal would keep hedge fund managers in the U.S., Singapore, Hong Kong and other jurisdictions from having investors in the 27-member EU.
“We are concerned that the original text of the directive, which is protectionist in nature where it came to third countries, could be drifting back,” Andrew Baker, CEO of the Alternative Investment Management Association, told Reuters.
The directive is currently making its way through the European Parliament, and requires the approval of both that body and EU member nations before it takes effect. If it does, it could impose strict new reporting and custody requirements on European hedge and p.e. funds, as well as possible leverage limits.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.