Lord Turner warned hedge funds might become a target in Europe
Even the European Commission’s own experts think it is going too far with its proposals for regulating the hedge fund industry.
Jaques de Larosière, author of an influential report on financial supervision, told a seminar in London the Commission’s draft directive on alternative investment management went much further than he had recommended. The report came to the conclusion hedge funds were not a systemic issue, but the draft directive proposes regulating some aspects of alternative funds even more tightly than Ucits, the retail investment vehicle.
As leader of a ‘High Level Group’, one might expect M. de Larosière’s words to have some weight.
The seminar, hosted by Business for New Europe, also heard from Lord Turner, chairman of the UK’s Financial Services Authority, who warned hedge funds might become a “target” in Europe, and Lord Myners, the UK financial services secretary to the Treasury, who called the directive “flawed”.
The Alternative Investment Management Association welcomed these comments – as well it might!
