EU Financial Chief Says Hedge Fund Deal Near

Jul 6 2010 | 1:01pm ET

Despite dire warnings last month about the fate of the European Union’s proposed hedge fund and private equity regulations, the controversial rules will be approved in September, a top EU official vowed.

Michel Barnier, the 27-nation bloc’s Financial Services Commissioner, told Bloomberg News that EU member states and the European Parliament are “in the final stretch” before voting to approve the new rules in September.

Barnier said the two sides “are close to an agreement” about alternative investment firms based outside of the EU. The Parliament, which last month was reported to be in no mood to compromise, wants to issue so-called “passports” to foreign firm that meet certain standards. Those passports would give hedge funds and private equity funds access to all EU markets.

But the EU finance ministers, who also must approve the regulations, did not include a passport provision, which would give each country in the bloc the right to approve or reject foreign funds. The British—who are most opposed to the EU rules altogether—threw a further monkey-wrench in by demanding that funds that fail to meet the passport requirements be allowed to apply for admission to individual EU markets.

Barnier also said that the EU plans to impose new rules covering derivatives and naked short sales. The latter could be banned outright, he said.

“It’s an option that we are studying with seriousness,” Barnier said.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.