The European Union’s planned hedge fund regulation regime is under siege from both sides. While left-leaning lawmakers have blasted the proposal, set to be made public next week, as full of loopholes, the hedge fund industry itself is no happier with it.
The Alternative Investment Management Association, the lead hedge fund lobby in Europe, said it was “very concerned” about the several delays in issuing the directive—it is now due on Wednesday—and that it has been “rushed through… without anything like the usual standards” of consultation.
“We are also concerned that the process of drafting the directive has been subjected to undue political pressure,” Florence Lombard, AIMA’s executive director, said.
The private equity industry, which will also be covered by the European Commission directive, also blasted the plans.
“A process, which should usually take many months, has been reduced to mere weeks,” Tim Hames, a spokesman for the British Private Equity and Venture Capital Association, told Reuters. “Consultation with the private equity industry has been non-existent and the political motivations for the proposal seem to far outweigh any economic motives.”