October 20, 2010
Hedge funds operating in Europe will need to obtain a special license in order to be traded in EU markets. The strict regulations were made possible after Britain and France settled a two-year-old dispute.
European finance ministers reached a breakthrough agreement on regulating the hedge funds industry on Tuesday.
“The big change is that at European level there was no regulation and no supervision, and now there will be one,” the EU’s market regulation commissioner, Michel Barnier, said in Luxembourg.
The EU is seeking greater transparency from hedge funds. Some argue that hedge funds contributed to the 2008 financial crash due to destabilizing moves on the markets.
This article was posted: Wednesday, October 20, 2010 at 2:45 pm