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

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of