By Huw Jones

LONDON, Oct 19 (Reuters) – European Union finance ministers have reached a compromise on the bloc’s first set of rules to directly supervise managers of hedge funds, private equity groups and other alternative investment funds from 2013.

Foreign funds will face a two-year delay until 2015 in obtaining a “passport” to operate across the 27-nation bloc.

Negotiations over the new rules have taken months due to a stalemate between Britain, home to the EU’s biggest hedge fund centre who wanted to tone down some elements, and France, which pushed for tougher regulation.

The new rules introduce mandatory authorisation, reporting requirements, stricter rules on use of custodians to protect investors and remuneration safeguards to avert excessive risk-taking.

WIDER CONTEXT

* The European Parliament has joint say with EU states on the new rules and was closely involved in Tuesday’s negotiations. Parliament is expected to formally give the nod next month.