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

MiFID2 For U.S. Firms: Key Questions Answered

Feb 27 2017 | 4:54pm ET

The January 2018 deadline for implementation of the EU’s mammoth MiFID2 regulations...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of