European Union Hedge Fund Negotiations
France Agrees to Hedge Fund European Union Regulations
The new regulations would allow foreign funds to market themselves across European investors through a passport system, as long as they submit to regulation by the European Securities and Markets Authority which is due to be established in Paris in January 2011.
The compromise comes after France, supported by Germany, went up against Britain and the U.K. over whether foreign private investment funds would have access to the passport system.
France wanted foreign funds to be kept out of the passport system, while Britain and the U.S. decried that stance as discriminatory.
The new regime will include registration, as well as greater reporting requirements.
European Commissioner Michel Barnier said at a press conference Tuesday, “The passport will have to be earned. There will be no discrimination, but there will be certain requirements.” Source