Bank criticises planned hedge fund regulation
The Bank of England has criticised draft EU regulation aiming to increase regulation in the hedge fund industry.
A report from the Bank’s Financial Markets Law Committee (FMLC) concluded that implementing the plans would result in ’systemic failure and widespread market disruption’, the Times reports.
According to the news source, approximately 2,000 amendments to the legislation are due to be presented to lawmakers today (February 8th).
The FMLC sought the opinions of a number of fund management industry representatives and said that highlighted ’an infinite number of legal uncertainty issues’.
One of the largest areas for concern, the committee noted, is that Brussels does not currently know how to define a hedge fund or the activities it carries out.
Last month, Javier Echarri, secretary general of the European Venture Capital Association, said that the number of requests for changes that has been submitted is ’unprecedented’ and indicates that there is ’a long way to go’ before the new directives can be implemented.
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Wednesday 30 September 09
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