Officials: EU Rules Will Block U.S. Hedge Funds

Jun 15 2010 | 1:17am ET

U.S. hedge funds may be shut out of Europe after all, a pair of regulators from both sides of the Atlantic is warning.

While the European Union is moving towards a compromise that is billed as watering down some of the more “protectionist” elements of its controversial proposed alternative investments rules, the U.S. will not meet the standards needed to give its hedge funds and private equity funds access to European markets.

While the European Parliament has been painted as the champion of opening Europe to foreign hedge funds—with restrictions—at U.S. and British prompting, the U.K. Financial Services Authority’s Dan Waters said the requirements proposed by the Parliament are draconian, Hedge Funds Review magazine reports. The Securities and Exchange Commission’s Robert Plaze, associate director for investment management regulation, told the InvestoRegulation conference in London that the U.S. cannot currently meet those requirements.

Contrary to popular perception, the European Commission’s plan would actually be best for foreign hedge funds, Waters said.


Lifestyle

Survey: Wall Street Banks Still Top Silicon Valley, Hedge Funds for Freshly-Minted MBAs

Jun 21 2016 | 9:01pm ET

Contrary to concerns that Wall Street isn't as appealing to new graduates as it...

Guest Contributor

The Future of the Blockchain in Financial Services Communications

Jun 17 2016 | 1:05pm ET

Over the past year, a large portion of the financial services industry has awakened...