July 19, 2005

Hedge Funds - McCreevy unveils green paper on EU Asset Industry

EU Commissioner McCreevy recently unveiled a policy discussion document (green paper) on EU Asset Industry. He said that there is no need for a legislative overhaul at this stage for the Hedge Funds. He added that if at all hedge funds are imposing a threat to the financial system, it is the duty of Central Banks and National Regulators to deal with them. He stressed upon the point that the current legislations should emphasize on making the laws work better for the countries and not waste it on formulating newer ones which are just not necessary. He also showed his disagreement to German Chancellor Gerhard Schroeder and others who are busy promoting the cause of regulating hedge fund industry. This row over regulation started primarily after takeover bid by the Deutsche Boerse for the London Stock Exchange was foiled by fund managers. McCreevy suggested that the EU fund legislation should be known as UCITS (Undertakings for Collective Investments in Transferable Securities) directive. UCITS are basically investments funds which are registered and are authorized to operate across borders. Reuters.co.uk reports:

“If hedge funds are a risk to the financial system, then central banks and national regulators should deal with them, he said. “

Read More: EU funds face quick fixes rather than big overhaul.

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July 19, 2005 in Regulation | Permalink




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