European vote on hedge funds delayed

Plans for a vote on new regulations covering hedge funds and venture capital investment have been delayed by European finance ministers.

The topic was set to be discussed in Brussels today (March 16th) but has been removed from the agenda as European leaders have been unable to reach a consensus on the issue.

A spokeswoman for Spain, which is chairing the negotiations, was quoted by Reuters as saying: ’Much progress had been reached but … more work needed to be done to reach maximum support.’

Under the terms of the proposals, borrowing and pay at hedge funds would be cut in a bid to improve transparency in the industry, something that may affect those who have invested their personal wealth in hedge funds.

But the UK - which wants more lenient legislation in order to protect London’s status as a leading financial centre - is in disagreement with countries such as France and Germany, which are demanding stricter rules.

The planned legislation has been criticised by the Bank of England, which last month warned that the changes would create ’systemic failure and widespread market disruption’. ADNFCR-2318-ID-19671310-ADNFCR