FSA Official Blasts Private Equity ‘Arrogance’

Feb 18 2010 | 2:01am ET

The private equity industry got a dressing-down from one of its chief defenders against potentially draconian regulation being discussed by the European Union.

Dan Waters, head of the U.K. Financial Services Authority’s asset management division, blasted the “arrogance” of p.e. firms, blaming them for the regulatory straits in which they find themselves. Waters is among the British regulators in the forefront of the battle to blunt the more far-reaching aspects of the proposed European Union alternative investment managers directive, which would apply to both hedge funds and private equity funds.

The proposed rules would impose strict new reporting and custody requirements, as well as possible leverage limits. But Waters warned that buyout firms were doing themselves no good when they open their mouths.

At a Berlin conference last week, Alchemy Partners’ Jon Moulton asked a panel of regulators and p.e. executives, including Waters, why the p.e. industry should be subjected to new European regulations. He also lamented the “clinically insane” amount of regulation he says the industry already faces in the U.K.

This was too much for Waters.

“It is the arrogance of that statement, that no regulation is needed, that has got the industry in trouble in the first place,” he offered. “We are where we are; we must deal with it.”

Waters has previously reserved such strong language for the legislation—currently working its way through the European Parliament—that both he and Moulton oppose. Last week, he blasted the proposed rules, arguing that they “could go badly wrong.”


In Depth

Firm Focus: Sustainable Insight Capital Bullish On ESG

Aug 12 2014 | 9:18am ET

Bruce Kahn spent over 15 years as a research scientist/consultant on environmental...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note