Possible EU Compromise On Foreign Hedge Funds

Jun 11 2010 | 12:25pm ET

The European Commission has injected itself into the sticky impasse between the European Parliament and European Union governments over how foreign hedge fund managers will be treated under proposed new regulations.

Under a compromise tabled by the commission, individual European governments could continue to decide which foreign hedge funds would be allowed to operate in their jurisdiction during a transition period. After perhaps three years, those state-by-state rules would be abolished in favor of a single system for the entire EU, Dow Jones Newswires reports.

If approved, the compromise would remove the final stumbling block to the EU rules, which would impose strict new reporting and custody requirements on hedge funds and private equity funds, as well as possible leverage and borrowing limits. Currently, the European Parliament is backing a so-called “passport” that would give foreign hedge funds that meet certain standards access to all EU markets. But European finance ministers, urged on by France, rejected such a move in their version of the regulations.

The approval of both bodies is necessary for the regulations to become law.

The fate of foreign hedge funds has dominated recent debate about the measure, with the U.K. and U.S. arguing vociferously against what they call “protectionist” measures, and France—which otherwise supports the tough Union-wide standards—arguing in favor of allowing national governments to decide which hedge funds are up to snuff.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR