Negotiations to hammer out a deal on the European Union's oft-delayed hedge fund regulations will resume on Friday, a top official said.
Despite word of a possible major concession on the part of France, reportedly dropping its outright opposition to granting foreign hedge and private equity funds access to all 27 EU countries, talks ended yesterday without a deal. But negotiators will be back at the end of the week, beginning what EU Financial Services Commissioner Michel Barnier referred to as "a decisive week."
France wants the U.K. to accept greater powers for a new pan-EU financial regulator, including the power to issue the "passport" the Britain and the U.S. have fought so hard for, in exchange for its concession on the issue.
The proposed alternative investments directive would impose strict new reporting and custody requirements on hedge funds and private equity funds. It requires the approval of both EU governments and the European Parliament, which has also pushed for the passport.