Thursday, 28 July 2016
Last updated 2 hours ago
Aug 26 2013 | 10:25am ET
There’s a German election in less than a month, which means it"s time for the country’s politicians to take aim at one of their favourite targets: hedge funds.
Chancellor Angela Merkel, campaigning for re-election on Sept. 22, said she would seek tougher international hedge fund regulations at next week’s Group of 20 summit in Russia. “It’s not enough to regulate just banks but not hedge funds and shadow banks, and I’ll fight for that,” she told a rally in Bonn. Merkel added that she hoped European members of the G-20 would “speak with one voice” on the issue.
Merkel’s ruling coalition currently has a wide lead in the polls over the opposition Social Democratic Party.
The chancellor’s statement comes after KPMG released a survey showing that just 22% of European hedge fund managers are in compliance with the European Union’s Alternative Investment Fund Managers Directive. Most of those who remain noncompliant are awaiting local guidance, no surprise given that more than half of the bloc’s 28 members failed to implement the new rules by a July 22 deadline.
Among those who failed to do so are G-20 members France, one of Germany’s staunchest allies in the push for tougher hedge fund rules, and Italy.