Funds Hub

Money managers under the microscope

New blow for hedge fund lobby


The battle over how hedge funds will be regulated by the EU has been going on for some time now and has taken many twists and turns along the way.

rtx5ivzHowever, after apparently making progress with the latest compromise text from Sweden, opponents of tough regulation may have hit a setback.

According to a report by Jean-Paul Gauzes, obtained by Reuters, the Frenchman has recommended tighter rules than many had expected.

These include funds having to tell regulators how much they intend to borrow, the creation of a pan-European watchdog that could intervene if a fund is seen to be taking too much risk, and the same pay curbs as for bankers.