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Business Secretary Peter Mandelson launched a broadside against proposed hedge fund rules from the European Union today, warning they could choke off investment needed to move the region out of recession.
The EU's proposals would require hedge-fund managers and private-equity firms overseeing £500 million or more to report to regulators. The directive is one of several measures the EU has proposed in the wake of the financial crisis.
Mandelson said in a speech in Brussels: “It is vital that this is fully consulted on and carefully designed. We have to make sure that we don't cut off important sources of venture capital or do anything that makes it harder to manage venture capital investments within the single market.”
The Financial Services Authority estimates the rules may cost fund managers £4.6 billion in compliance expenses.
Reader views (1)
It is time to simply tell the EU to ****** off. These useless parasites cannot create wealth, they only destroy it. The hedge funds have not cost taxpayers a single penny! Sure some have failed but the money was lost by investors not the taxpayer. Hands off Europe, go sort out unemployment by de-regulating and cutting taxes.
- James Macleod Ritchie, Oyster Bay Cove
