Financial Regulatory Forum

HIGHLIGHTS-UK conference on EU hedge fund rules

September 17, 2009

A video grab image shows Britain's City minister Paul Myners speaking at a Treasury Committee in London March 17, 2009.     REUTERS/Parbul TV Via Reuters TV  (BRITAIN BUSINESS POLITICS)    LONDON, Sept 17 (Reuters) – Britain’s Financial Services Authority is holding a one-day conference on asset management to discuss a draft European Union law to regulate managers of hedge funds, private equity and other alternative investments.
   The following are comments from speakers:
   
   UK FINANCIAL SERVICES MINISTER, PAUL MYNERS
   “A good directive would offer sufficient and appropriate support to investor protection and financial stability proportionate to proven need.”
   “We are leading the cause for more effective regulation and supevision. The UK is not in the business of blocking more regulation.”
   “Hedge funds and private equity have not been central to the financial crisis.”
   “Depositories must be allowed to delegate custody outside the EU. It’s not practical or necessary for custodians to hold actual title deeds.”
   “It would frustrate the emergence of new private equity managers in European countries where private equity is currently not an active force.”
  “The evidence does not support discriminating against private equity.”
   “Simple leverage ratios (on private equity) are of very little use in making the kind of judgements required. Proper oversight requires more detailed and nuanced analysis. Imposing an advance arbitrary leverage cap is more of a hindrance… Embedded leverage in a fund can come in more forms than simply bank debt.”
   “This is EU legislation and stakeholders should make their voices heard at EU level. We now need to see investment managers, institutional investors and end clients getting involved and making their voices heard. Trade associations should work constructively together to avoid crude politics.”
   “Those who come across as arrogant or self-serving will undermine the work of others.
   “The whole of Europe would suffer from any damage sustained (to the financial services industry).
   “It is clear the draft directive will be amended before it is agreed.
   
   
   ((Reuters messaging: huw.jones.reuters.com@reuters.net; + 44 207 542 3326; huw.jones@thomsonreuters.com))
 Keywords: BRITAIN FSA/ 
  
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 Thursday, 17 September 2009 09:48:04RTRS [nLH596546] {EN}ENDS

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