France UK EU Directive
France and UK Resolve Differences on Hedge Fund DirectiveLast month, it seemed that negotiations between France and other EU members had hit a permanent stall. The French Finance Minister's refusal to back a plan that would give licenses to foreign funds to work in all of the EU's member states was expected to be an insurmountable hurdle in negotiating the directive. However, today it is reported that France and the UK have reached a deal in which the former will give up its objections if the latter agreed to give more power to a European watchdog policing foreign funds.
France is ready to drop objections to a key part of a law to tighten rules on hedge funds in exchange for concessions from London, a senior diplomat said, moving to end a row that threatened to harm relations with Washington.
As talks entered their final round, France demanded Britain surrender more policing power to a European watchdog allowing it monitor foreign funds. Paris, in return, would agree to let such funds qualify for a licence to work across the bloc's 27 countries.
"There are real signs of both sides coming closer together," said the EU diplomat, who is familiar with France's thinking, commenting on a deal which would likely postpone the introduction of the EU-licence scheme.
The licencing issue a dispute between France, Britain and the United States about whether the regulations would block foreign funds wanting to do business in Europe. Source