The EU parliament decisively backed the new rules - expected to have a particular impact on London, home to the majority of European hedge funds - in a ballot in Brussels yesterday (November 11th 2010).
"Today's vote is a strong reminder to the asset management industry that a much more intrusive regulatory regime is on its way, through this directive and a raft of other changes," said Amanda Rowland of PricewaterhouseCoopers.
Hedge funds will be obliged to provide more in-depth reporting with additional registration requirements, while the overhaul also seeks to prevent private equity operations from buying companies with the intention of breaking them up.
In a letter to prime minister David Cameron earlier this week, British Bankers' Association and Barclays chairman Marcus Agius claimed the UK's financial industry has been harder hit by regulatory reform than those overseas.
By Claire Archer