New EU hedge fund rules introduce passport system

| 19/10/2010

(Bloomberg): Hedge-fund and private-equity regulations have been approved by European Union finance ministers after they ended a dispute over requirements for fund managers from outside the EU. Ministers agreed to give the Paris-based European Securities and Markets Authority powers over a so-called passport system for non-EU hedge-fund managers. The passport would give managers access to investors across the 27-nation EU with a single registration in return for signing up to transparency rules. Hedge funds and private-equity firms are under the scrutiny of lawmakers worldwide, who say they are partly to blame for the financial crisis. 

 “For the first time we can say this sector is under control,” Swedish Finance Minister Anders Borg said at a meeting of finance ministers in Luxembourg today (Tuesday). “It’s an open solution, one where third-country funds can be part of the market.”
Belgium, which holds the rotating EU presidency, will hold talks with representatives from the European Parliament and European Commission to decide on a final version of the law.
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