With the drumbeat for hedge fund regulation getting louder, from Berlin to Washington to Connecticut, the industry is going on the defensive.
Hedge funds are already “rigorously regulated” in Europe, the Alternative Investment Management Association said, a week after European leaders agreed on the need for additional oversight of the industry as part of a far-reaching set of proposals to change the global financial system. AIMA’s statement sought to downplay the need for additional regulation, and to combat the image of hedge funds as freewheeling and unsupervised.
“It is important to stress that hedge fund managers in Europe are currently rigorously regulated at both national and European levels,” Andrew Baker, CEO of AIMA, said. “The industry is also subject to a whole range of European directives. It is part of the solution, not part of the problem.”