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

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.