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Reuters UK – A draft European Union law that will require hedge fund managers to be authorised needs refining to cover other types of alternative investments better, a senior MEP said on Tuesday.
The Alternative Investment Fund Managers law is before the European Parliament and EU states for adoption, but is already subject to heated debate.
It covers many types of investments that do not come under the EU’s long-standing mutual funds framework known as UCITS.
Reuters AlertNet – The newly elected European parliament starts its five-year term on Tuesday in a combative mood which could slow the passage of laws intended to fight Europe’s worst economic crisis in decades. At its first session since an election in June, the assembly will put off for at least two months a vote on reappointing European Commission President Jose Manuel Barroso, although he is backed by all 27 European Union governments.
Hedge funds and private equity firms are hoping a resurgent right wing in European politics will give them stronger support when they call for changes to proposed legislation they see threatening their industries.
The coalition of European conservative parties won a decisive victory in elections last week, taking over 260 seats in the European parliament compared with around 160 seats for its socialist rivals.
"We are viewing this quite positively," said Javier Echarri, secretary general of the European Private Equity and Venture Capital Association.
" are expected to be able to deal with financial regulation on a calmer basis with more understanding than the more emotional debate that we have seen in the parliament in past years," Echarri said.
Times Online – The role of the City of London as one of the world’s preeminent financial centres came under attack for the second time in two weeks yesterday, this time from proposed EU rules for private equity and hedge funds.
The EU wants private equity firms with more than €500 million under management and hedge funds with more than €100 million of funds to file detailed financial information with the Financial Services Authority. Private equity firms will also need to file figures relating to debt, risk and cash.
If the European Parliament approves the proposed legislation, about 1,000 British companies – owned by private equity firms either headquartered or with an office in the EU and with more than €500 million under management – would be saddled with annual compliance costs estimated at about £30,000.
