Would-Be British Pointman On Hedge Fund Regs. Seeks ‘Sensible Discussion’

May 6 2010 | 12:22pm ET

Should the British Conservative Party win today’s election—and manage to form a government—the country’s next Chancellor of the Exchequer will have a major issue on his plate on day one.

As Britons go to the polls, representatives of European Union countries are meeting today to hammer out their differences over the bloc’s proposed alternative investments regulations. In March, British Prime Minister Gordon Brown, who may well be out of a job tomorrow, refused to allow the EU’s finance ministers to approve the rules, which is necessary for them to become law. But they must come to a vote by May 18.

George Osborne, likely to become Chancellor under Prime Minister David Cameron, has previously pledged to maintain the governing Labour Party’s line on the hedge fund directive. But the U.K. is isolated in its opposition to the rules, and it is unclear that either Osborne’s Tories or Prime Minister Gordon Brown’s Labour could stop them.

“I’m not against a properly regulated hedge fund industry, but my concern is that the directive is poorly targeted and singles out the U.K.,” by far Europe’s largest hedge fund and private equity center, Osborne told the Financial Times.

Still, he may have little more than week or two to hammer out a compromise more favorable to the British alternatives industry.

“I’m not looking for a fight,” he said. “I’m looking for a sensible discussion.”


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of