EU Markets Chief Tells Geithner Hedge Fund Rules Won’t Discriminate

Apr 9 2010 | 1:28am ET

The European Union’s proposed hedge fund rules will not exclude U.S. hedge funds from the continent, a top official said.

Michel Barnier, the EU’s internal markets commissioner, sought to reassure U.S. Treasury Secretary Timothy Geithner in a letter last month. Barnier’s missive followed Geithner’s own letter to Barnier, warning him against imposing measures that discriminate against U.S. hedge funds and private equity firms.

“I am convinced that access to the European single market should be granted to managers and funds domiciled in third countries, including the U.S., provided that high level standards of transparency and security are agreed,” Barnier wrote on March 29. He also took aim at Geithner’s contention that the EU rules would conflict with the guidelines agreed by the Group of 20.

Not so, says Barnier. The EU rules “respond directly to the commitments of the G20 leaders.”

Geithner appears to have been unconvinced by Barnier’s assurances. A week after Barnier wrote his letter, Geithner wrote another, urging four European finance ministers to reject any legislation that would “discriminate against foreign firms.”

Despite his earlier warnings that he would not be “bullied” by Washington, Barnier took a conciliatory tone in his letter to Geithner.

“Discrimination has no place in the emerging regulatory framework,” he wrote. “By providing a level playing field for domestic and foreign players alike, we eliminate opportunities for regulatory arbitrage and create the conditions for fair competition.”


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.