EU ambassadors reach draft hedge fund regulation agreement

New draft measures that increase regulation of hedge funds and could affect wealth management have been agreed by European Union (EU) ambassadors, despite opposition from the UK.

EU representatives have struck a deal that will force hedge funds and private equity groups to register and agree to pay limits, as well as be subject to supervision across Europe.

The issue of hedge fund regulation is likely to be the first point of disagreement that will have to be handled by the UK’s new coalition government.

George Osborne, the chancellor, is set to attend a meeting in Brussels on Thursday (May 20th), an EU diplomatic source was quoted by the news agency as saying.

’The main thing is to enable the EU presidency to start formal negotiations with parliament on a final deal,’ the individual was quoted as saying.

A final decision on hedge fund regulation has already been delayed this year, with the topic removed from the agenda at a meeting in March due to disagreements over the details of the proposals.ADNFCR-2318-ID-19777858-ADNFCR