Hedge funds and private equity firms 'set to be subject to tough EU laws'

10 May 2010

The European parliament looks set to approve tough new measures governing the activities of hedge funds and private equity firms on the continent today (May 10th 2010).

It is expected that politicians will vote in favour of a draft directive that includes rules such as one which requires companies to have a "passport" to operate in Europe.

While it may take as long as two years to turn the legislation into law, the plans have come under fire in the US and the UK, reports the Guardian.

Andrew Baker, chief executive of the hedge fund lobby group the Alternative Investment Management Association, said: "We feel that the proposed text will result in Europe closing its borders to the detriment of its own investors, many of which are responsible for covering Europe's citizens' pension and insurance needs."

Earlier this month, US Treasury secretary Timothy Geithner urged European leaders to rethink their plans for the new laws, stating that legislative efforts should be directed towards working on bringing in global measures, reported the Financial Times.

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development