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.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note