EU finally approves hedge fund rules

The EU Parliament on Thursday approved tougher rules governing hedge-fund transactions. Hedge fund managers will have to register with national supervisory authorities in accordance with harmonised EU standards in future. The rules are a compromise, writes the left-liberal daily La Repubblica: "Paris demanded stricter regulations. London, where most of the European hedge-fund deals are concluded, feared that overly stringent regulations would lead to capital flight to other countries like Switzerland, which are beyond the reach of Esma, the EU's new stock and securities supervisory authority. In the end London, under pressure from the US, pushed through a safety clause that allows foreign fund managers to remain active in EU member states for a further three years without obtaining the authorisation conferred by an 'EU passport'. .. The parliament had demanded the introduction of rules for hedge funds after the collapse of the US investment bank Lehman Brothers. But only now that the G20 is pushing for greater transparency has Europe finally made up its mind to introduce new rules."

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