Why private equity regulation may be unnecessary
Tuesday, May 12, 2009 : Permalink
GrowthBusiness.co.uk – Its proposals would, if enacted, put an additional burden on both funds and the companies in which they invest. They have been greeted with dismay in the City, but what would they mean for the industry? The central notion is that fund managers should be subject to ‘harmonised’ governance standards across the EU, with robust systems put in place to manage risk, liquidity and conflicts of interest. The rules would apply to private equity funds with more than €100 million (£90 million) invested, though this threshold would be increased to €500 million for funds which do not use leverage and lock in their investors for a minimum of five years.
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Tags: 100-million, central notion, conflicts of interest, dismay, equity-funds, fund-managers, governance standards, investors, leverage, proposals, risk liquidity, robust systems, threshold
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