EU Back Hedge Fund Rules
Most EU Member Countries Back Hedge Fund Rules
It has been a slow march for European Union countries regulating hedge funds but EU governments moved one step closer yesterday. The majority of EU member countries backed the directive on alternative asset managers and voted to start talks over the final legislation.
The European Union moved a step closer to new rules on hedge funds and private-equity firms on Tuesday, with most member states backing regulation and agreeing to begin talks on final legislation with the European Parliament.
The proposal backed by finance ministers at the European Council calls for fund managers to be authorized by national governments. National authorities will also review the trading activities of funds and approve their internal risk-management practices.
Many EU governments said hedge funds, using billions of euros in borrowed money, destabilized financial markets during the financial crisis of 2008 and later helped fuel a speculative attack on the government debt of Greece and other troubled euro-zone states. Source
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