France Blasts Proposed EU Hedge Fund Rules

Apr 28 2009 | 2:00am ET

France’s economy minister has become the latest to pile on the as-yet-unreleased but still remarkably unpopular draft hedge fund rules for the European Union. Just two days before the European Commission proposals are belated set to be published, Christine Lagarde warned that they won’t do enough to keep hedge fund in check.

“I do not think it responds to the requirements of transparency, control and appropriate supervision for hedge funds that become of systematic importance,” she said at a financial markets conference.

Lagarde’s voice is just part of a growing chorus denouncing the planned hedge fund rules. Both France and Germany—led by center-right governments—have expressed their disapproval, as have left-leaning legislators in the European Parliament. And the proposal is no more popular within the hedge fund and private equity communities, either, with the Alternative Investment Management Association recently coming out in opposition to it.

Under proposed rules drafted by the European Commission, only “alternative investment fund managers” with at least €250 million (US$333 million) in assets under management would be covered by extensive new disclosure rules.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of