U.K. Unions Push For Hedge Fund Regs; FSA Does Not

May 29 2007 | 8:38am ET

British Prime Minister Tony Blair has often been at odds with the labor unions that form the core of his Labour Party. But the Trades Union Congress is giving the premier, set to leave office at the end of June, one last push.

The TUC sent a letter to Blair urging him to switch sides on the hedge fund oversight question and side with his German counterpart, Chancellor Angela Merkel, who has used her country’s presidency of the G8 to push for a code of conduct for hedge funds. To this point, Britain has sided with the United States in opposing essentially any hedge fund transparency measures proffered by the Germans.

“Serious questions are now being asked across the world about the rapid rise of private equity and hedge funds on tax revenues, on jobs and growth, and on the long-term sustainability of economies increasingly based on very high levels of corporate debt,” TUC Deputy General Secretary Frances O’Grady wrote. “Only more detailed investigation followed by the necessary regulation will ensure that new asset classes of this sort benefit the whole of the economy and not just a handful of financial specialists.”

The appeal is likely to fall on deaf ears, as Blair’s designated successor, Chancellor of the Exchequer Gordon Brown, has consistently opposed such measures as well.

O’Grady isn’t likely to be satisfied by a set of guidelines issued last week by the U.K.’s financial regulator, the Financial Services Authority, which give activist hedge funds a wary welcome.

The guidelines express general support for activism, but warned funds that it will not tolerate collusion. Under the new rules, the FSA said hedge funds must disclose their stakes in a company when acting in a group to pursue a strategy or face market-abuse charges.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.