No Deal On EU Hedge Fund Rules

Oct 14 2010 | 1:28am ET

The European Union's proposed alternative investment regulations hang in the balance once again as talks to reach a compromise failed today.

European diplomats were unable to break the deadlock between the U.K. and France, which last week announced it opposition to granting foreign hedge funds access to all 27 EU countries, but later indicated a willingness to accept the so-called "passport" in exchange for other concessions.

Agreeing on those concessions now falls to Christine Lagarde and George Osborne, the French and British finance ministers. The two are expected to attempt to reach an accord in advance of next week's meeting of EU finance minister, where it is hoped a deal can be reached.

One of the non-starters in this week's negotiations were a plan that would allow EU countries to decline the passport agreement.

"Britain believes this would be an opt out," one diplomat told Reuters. "It allows member states to pick and choose."

The U.S. is pushing hard for a version of the passport that will be available to foreign hedge funds. In addition, the European Parliament, which must approve the alternative investments directive alongside EU governments, is also demanding it.

One diplomat underscored the urgency of reaching a deal next week.

"If there is no agreement now, it is going to last for another two years," a diplomat told Reuters.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Scene Last Night: Clinton, Schwarzman, Corzine, Neidich, Diamond

Nov 25 2014 | 5:52pm ET

Steve Schwarzman had a granddaughter yesterday morning. Last night he sat one table...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.