Hedge Fund Regulation
CITY regulator the Financial Services Authority (FSA) yesterday gave its support to hedge funds and called on the European Union (EU) to rethink its plans for a crackdown on the industry.
Managing director of the FSA’s risk division, Sally Dewar, said the EU must address weaknesses in the current rules in a “proportionate” way in its draft directive on alternative investment funds.
The directive is threatening new reporting rules that will damage the performance of the UK hedge fund industry – the biggest in Europe – as well as capital requirements and leverage limits. source