Hedge fund agreement eludes European parliament

[Francesca9]

Source: Guardian (UK)

Brussels officials failed today to reach agreement on a directive aimed at imposing stringent controls on hedge funds. The European parliament had to call off a scheduled press conference after the MEPs and Belgium, which holds the EU presidency, could not agree on a draft for the directive...

In Britain, the former Labour government fought in Brussels to soften the proposed directive, given the millions of pounds of tax revenue that hedge funds bring to Britain's public coffers. London is home to almost 90% of the European hedge fund industry, and the European choice of most US hedge funds, including New York-based Paulson. Hedge funds have threatened to move out of Europe if the new rules are too strict. Some have already left Britain for Switzerland to avoid higher taxes and caps on bonus payments.

Read more: http://www.guardian.co.uk/business/2010/oct/11/hedge-fund-directive-european-parliament

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Hard to say if anything at all will change - except that the hedge funds will be in Geneva or New York and not London.