EU mulls hedge fund regulatory body
A regulatory watchdog to oversee hedge funds should be set up for the whole of Europe, it has been claimed.
Jean-Paul Gauzes, a member of the European parliament for France, is to present a report on the matter.
Forbes reports that the regulator would oversee hedge funds to ensure that they exercise proper limits on borrowing and risk-taking, placing caps on the former.
In addition, the watchdog would gauge pay to keep it to an acceptable level.
Some concern about hedge funds has intensified since the recession began.
As a result of this, the European Commission has created some draft rules to relate to them.
The news source noted that Britain may see such a regulator as an attempt to reduce its power over its own hedge funds, as most of those are based in London.
Recently, the Telegraph reported that hedge funds are becoming more popular.
Writer Alison Steed said that they can appeal since they can bring in profit whatever the state of the market, but she noted that they are high-risk investments.
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