Britain’s Tories Would Oppose EU Hedge Fund Rules

Mar 23 2010 | 3:30am ET

If proponents of the European Union’s proposed hedge fund regulations hope a change in government in London will smooth the path, they are likely to be disappointed.

The U.K.’s opposition Conservative Party, widely expected to become the largest party in the British Parliament after the country’s elections, expected in May, would oppose the legislation, one of its EU leaders said. Prime Minister Gordon Brown of the Labour Party last week stopped the Alternative Investment Fund Managers directive in its tracks, blocking the approval by the bloc’s finance ministers which is required for it to become law.

With opposition from both the left and right in London, Europe is set for a pitched battle on the directive no matter who wins the British election.

“What’s on the table—to make it difficult for European investors to invest in non-EU hedge funds—is protectionism,” Syed Kamall, a Conservative member of the European Parliament, told Reuters. A Tory government “would make it clear that it isn’t acceptable.”

The EU rules would impose strict reporting and custody requirements on European hedge funds and private equity firms, as well as possible leverage limits. Among the 27 EU members, only Britain, Cyprus and Malta are reportedly opposing the legislation.

But Kamall warned the rest of the bloc against bullying the U.K., home to the overwhelming majority of the European alternative investment industry.

“It would not look good if the other EU countries were to gang up against Britain,” he said.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

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.