EU approves hedge fund transparency law

(Bloomberg): A panel of European Union lawmakers approved a proposal to force hedge fund managers outside the EU to agree to transparency standards in exchange for a so-called passport to market to investors in the 27-nation bloc. The European Parliament’s economic and monetary affairs committee voted for the measure today (Monday 17 May) in Strasbourg, France, as part of a package of tougher rules for hedge-fund and private- equity managers. The full EU Parliament is due to give its verdict on the draft legislation, which the US has opposed, in July. “It’s very important,” Jean-Paul Gauzes, the French lawmaker who sponsored the bill in the parliament, said in an interview.

“We have to bring order.” The overall law, which would also see investment managers subject to restrictions on bonuses and how much debt they can use, was passed with 33 votes in favour, 11 against and three abstentions. It was opposed by UK conservative members of the committee.