Germany Pushes Tougher Hedge Fund Regulation

Apr 8 2009 | 5:07am ET

Last week’s Group of 20 summit failed to produce agreement on tough new regulation of hedge funds, but Germany isn’t giving up.

The leaders of Europe’s largest economy have long pushed for international hedge fund regulation and oversight. But the rules proposed at the G-20 meeting in London and by the European Union leave much to be desired in German eyes.

Peer Steinbrück, the country’s finance minister, called for strict restrictions on leverage and greater disclosure of risks.

“The EU proposal contains good ideas, but it doesn't go far enough,” he told the Taz newspaper. “I want to force the funds to use more of their own money when doing business and to keep risks on their books.”

Meanwhile, British regulators are preparing to increase their oversight of that country’s hedge fund industry, the second-largest in the world after the U.S.

The Financial Services Authority told CityWire that it expects to handle hedge fund regulation in the U.K. Monitoring the industry “would be nothing new to us,” a spokesman assured.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...