European Parliament Delays Hedge Fund Vote

May 10 2010 | 1:26pm ET

The European Union’s proposed alternative investments regulations have hit another snag.

Despite optimism last week that a compromise was imminent, a key European Parliament committee delayed its vote on the Alternative Investment Fund Managers Directive by a week to give it more time to hammer out differences among lawmakers. The rules would impose strict new reporting and custody requirements on hedge funds and private equity funds, as well as possible leverage limits. It is also likely to bar funds based in certain jurisdictions—which remain unclear—from the European market.

The rules require the approval of both the European Parliament and the EU’s finance ministers. The latter has also not been forthcoming after British Prime Minister Gordon Brown blocked a vote on the matter in March.

“More time is needed,” Sharon Bowles, a British member of the Parliament and head of the Economic and Monetary Affairs Committee, said. The committee wishes to give “more consideration” to the opinion of Parliament’s legal affairs committee, and will now vote on May 17.

“It’s a European Parliament decision and we must respect their process,” Michel Barnier, the EU Financial Services Commissioner, said. But he added, “it’s important we reach an agreement quickly, hopefully before the summer.”

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...